As interest rates,and consequently investors' required rates of return,change over time the ________ of outstanding bonds will change as a result.

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The price of outstanding bonds will change as a result of changes in interest rates and investors' required rates of return. When interest rates increase, the existing bonds with lower coupon rates become less valuable compared to newly issued bonds with higher coupon rates, causing the price of outstanding bonds to decrease. Conversely, when interest rates decrease, the existing bonds with higher coupon rates become more valuable compared to newly issued bonds with lower coupon rates, causing the price of outstanding bonds to increase. Therefore, the price of bonds is directly influenced by changes in interest rates reflecting the investors' required rates of return.

As Interest Rates,and Consequently Investors' Required Rates of Return,change Over