If interest rates move lower after a Treasury note is issued,a holder selling it into the secondary markets:

Question

Quizplus · Accepted Answer

When interest rates move lower, the value of existing Treasury notes increases, as their fixed coupon payments become more attractive compared to the lower prevailing rates. Therefore, a holder selling a Treasury note into the secondary market will receive a price higher than their original purchase price, resulting in a capital gain.

If Interest Rates Move Lower After a Treasury Note Is