Conversely, as interest rates fall, prices of outstanding bonds rise until their yield matches that of new bonds issued at the current rate. (peterlazaroff.com)
This would lower your bond value from $ 100 dramatically to represent the current coupons of new bonds coming onto the market. (triageinvestingblog.com)
When rates rise, bonds drop in value because fixed income buyers prefer investing in new bonds with higher yields. (insurancenewsnet.com)