If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally

Name: If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally
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As interest rates rise, newly issued bonds have higher coupon rates which means investors are less likely to buy older bonds with lower coupon rates. Therefore, the demand for the previously issued bonds decreases, causing their value to decrease.

If Overall Interest Rates in the Economy Rise, a Corporate