The higher the interest rate,the higher the price of a bond.

Name: The higher the interest rate,the higher the price of a bond.
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Question

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The price of a bond and its interest rate are inversely related. When interest rates rise, the price of existing bonds will fall to compensate for the opportunity cost of investing in newer bonds with higher interest rates. Conversely, when interest rates fall, the price of existing bonds will rise as they become more attractive to investors seeking a fixed income.

The Higher the Interest Rate,the Higher the Price of a Bond