The lower the market interest rate,the lower the bond issue price will be.The higher the market interest rate,the lower the bond issue price will be.

Question

Quizplus · Accepted Answer

The bond issue price is inversely related to market interest rates. When market interest rates fall, existing bonds with higher interest rates become more valuable, increasing their issue price. Conversely, when market interest rates rise, the price of existing bonds with lower interest rates decreases.

The Lower the Market Interest Rate,the Lower the Bond Issue