Suppose the market interest rate falls from 3 percent to 2 percent. This will lead to in bond prices and in bond yields.

Name: Suppose the market interest rate falls from 3 percent to 2 percent. This will lead to in bond prices and in bond yields.
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When market interest rates fall, existing bonds with higher interest rates become more attractive, leading to an increase in their prices. However, the yield on these bonds, which is inversely related to their price, will decrease.

Suppose the Market Interest Rate Falls from 3 Percent to 2