When interest rates rise,bond prices will:

Name: When interest rates rise,bond prices will:
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Question

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When interest rates rise, bond prices will fall. This is because new bonds issued will have a higher yield than existing bonds, making the existing bonds less attractive to investors. As investors sell their existing lower-yielding bonds to buy new higher-yielding bonds, the demand for the existing lower-yielding bonds decreases, causing their prices to fall.

When Interest Rates Rise,bond Prices Will