1. Bonds are debt 2. Investment grade bonds are or better 3. When market interest rates go up, bond prices go. if coupon is fixed rate; if coupon is floating rate, the bond's interest rate periodically in 4. Spread is the difference between the bond rate & basis points (100 bps = __%) 5. Bond duration - PV measures sensitivity to interest rate changes 6. The relationship between the price of a bond and its YTM is not straight ; also 7. Corporate bond yield = risk-free rate (real interest rate + expected inflation + maturity premium) + 8. Callable bonds give bond at a price the right to all or part of the bond back to 9. Putable bonds give the right to at a price 10.Convertible bonds give bondholder the right to 11.Bond dealers quote flat bond prices which means that they which can be 12.Securitization makes loans into bought & sold. Examples include