If interest rates consistently rise over a specific period, the market price of a bond you own would likely ____ over this period. (Assume no major change in the bond's credit risk.)

Question

Quizplus · Accepted Answer

When interest rates rise, the market price of existing bonds typically decreases because new bonds are issued at the higher current interest rates, making the lower-yielding existing bonds less attractive.

If Interest Rates Consistently Rise Over a Specific Period, the Market