When general interest rates fall, the prices of bonds in the secondary market increase.

Name: When general interest rates fall, the prices of bonds in the secondary market increase.
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Question

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When general interest rates fall, bond prices increase because the fixed interest rate on the bond becomes more attractive to investors compared to newly issued bonds with lower interest rates. This causes an increase in demand for existing bonds, leading to an increase in their prices.

When General Interest Rates Fall, the Prices of Bonds in the Secondary