bonds (low rated) AAA rated corporate bonds (high rated) and BB rated corporate AAA rated corporate bonds will have lower interest rates AAA and BB rated corporate will have higher interest rates directions with higher and lowere bonds' interest rates will move in opposite AAA rated bonds interest rates risk environments BB rated bonds will be very volatile Question 3 ( 10 points) saved Which is generally true about short term government bonds? They will typically have the same interest rates as long term bonds They typically have higher interest rates compared to long term government bonds They typically have lower interest rates compared to long tem of bonds cycles .