The price of a bond with a fixed coupon rate and the market required return have a relationship that is best described as

Question

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The price of a bond with a fixed coupon rate and the market required return have an inverse relationship. As the market required return increases, the price of the bond decreases, and vice versa. This is because investors demand a higher rate of return for the same level of risk when interest rates are higher, so they are willing to pay less for the bond. Conversely, when interest rates are lower, investors are willing to pay more for the bond, driving up its price.

The Price of a Bond with a Fixed Coupon Rate