Point Counter-Point Does Governance of Firms Affect the Prices of Their Bonds? Point No. Bond prices are primarily determined by able to reduce their default risk and thereby increase interest rate movements and therefore are not affected the price of their bonds. by the governance of firms that issued the bonds. Who Is Correct? Use the Internet to learn more Counter-Point Yes. Bond prices reflect the risk of about this issue and then formulate your own opinion. default. Firms with more effective governance may be