The price of bonds is tied to the interest rate; when one goes up, the other must fall.

Name: The price of bonds is tied to the interest rate; when one goes up, the other must fall.
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This relationship is known as the bond-market inverse correlation between bond prices and interest rates. When interest rates increase, bond prices decrease to ensure that the yield on the bond matches the current market rate. Conversely, when interest rates decrease, bond prices increase to maintain the yield.

The Price of Bonds Is Tied to the Interest Rate;