Why do bond prices go down when interest rates go up quizlet?

Why do bond prices go down when interest rates go up quizlet? If interest rates rise, newly issued bonds offer higher yields to keep pace. Therefore, exiting bonds with lower coupon payments are less attractive, and the price must fall to raise the yield to match the new bonds. Why do bond prices decrease when … Continue reading Why do bond prices go down when interest rates go up quizlet?