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When the interest rate rises, the existing bond yield seems less attractive hence the demand and the price of bonds falls resulting in the yields increasing until the bonds seem attractive to buyers once again.
When the interest rate falls, the existing bond yields seem more attractive, thus the demand and the price of bonds rises resulting in the yields falling until the bonds are no longer more attractive to buyers
Dana05 answered the question on July 18, 2019 at 19:30
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