Prices of existing bonds move _________ as market interest rates move _______.

Name: Prices of existing bonds move _________ as market interest rates move _______.
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When market interest rates move down, the prices of existing bonds move up and vice versa. This is because the coupon rate of old bonds stays fixed and investors will demand higher yields from new bonds issued at a more favorable rate, causing the price of existing bonds to go up to match the yields of new ones.

Prices of Existing Bonds Move _________ as Market Interest Rates