Investment grade bonds are or better 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 Spread is the difference between the bond rate & basis points (100 bps = _%) Bond duration = PV measures sensitivity to interest rate changes ; also The relationship between the price of a bond and its YTM is not straight Corporate bond yield = risk-free rate (real interest rate + expected inflation + maturity premium) + Callable bonds give the right to all or part of bond at a price Putable bonds give the right to the bond back to at a price Convertible bonds give bondholder the right to .Bond dealers quote flat bond prices which means that they Securitization makes loans into bought & sold. Examples include: which can be