CHAPTER 6 QUESTIONS 1. What is debt? What are some of the characteristics of debt? 2. What information do bond ratings provide? Why are these ratings important? 3. How are bond prices determined? 4. How are bond yields determined? 5. What is the relationship between bond prices and (a) market rates and (b) time to maturity? i. If market rates rise after a bond is, what will happen to the bond's price and to its YTM? ii. Does the length of time to maturity affect the extent to which a given change in interest rates affects a bond's price