Ceteris paribus, as interest rates rise, which of these statements is most likely to be true?

Question

Quizplus · Accepted Answer

When interest rates rise, the value of existing bonds falls, as new bonds with higher interest rates become more attractive to investors. As a result, the duration of bonds falls because the remaining cash flows are discounted at a higher rate, reducing their present value. This makes bonds less sensitive to interest rate changes, lowering their volatility. Newly issued bonds have the same duration as existing bonds of the same maturity, all else equal.

Ceteris Paribus, as Interest Rates Rise, Which of These Statements