A bond's value will increase with increases in interest rate over time.

Name: A bond's value will increase with increases in interest rate over time.
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Question

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When interest rates increase, the value of existing bonds decreases because new bonds are issued with higher yields, making older bonds with lower yields less attractive to investors. Therefore, the value of a bond will decrease with increases in interest rate over time.

A Bond's Value Will Increase with Increases in Interest Rate