What is the inverse relationship between bond prices and interest rates?

Question

Quizplus · Accepted Answer

When interest rates go up, the fixed income provided by bonds becomes less attractive to investors, leading to a decrease in demand and a subsequent decrease in bond prices. Conversely, when interest rates go down, the fixed income provided by bonds becomes more attractive, leading to an increase in demand and a subsequent increase in bond prices. This inverse relationship is a fundamental principle of bond investing.

What Is the Inverse Relationship Between Bond Prices and Interest