An increase in the yield of a bond compared to the coupon rate would be associated with an increase in the price of a bond.
Since the interest rates on a bond are fixed, an increase in yields available on similar bonds means that this bond is less desirable, and would lower its price.

Question

Quizplus · Accepted Answer

An increase in the yield of a bond compared to the coupon rate would be associated with an increase in the price of a bond.
Since the interest rates on a bond are fixed, an increase in yields available on similar bonds means that this bond is less desirable, and would lower its price.

An Increase in the Yield of a Bond Compared to the Coupon