Arduino / Bluetooth Mate / Tera Term

Dogberry:
Arduino Micro powered by 9V battery

Very bad idea. Use a proper 9v wall wart. Maybe connect bluetooth to your phone instead, i.e. just use the USB to provide power.

I assume the bluetooth is 115400 by default. If not, be sure the code matches the speed properly.

TX (pin 0) on arduino micro -> RX on Bluetooth Mate
RX (pin 1) on arduino micro -> TX on Bluetooth Mate

Most Arduinos have Tx on pin 1