Options
- A
Increase
-
Decrease
Correct answer
- C
Remain unchanged
- D
Cannot be predicted
Why this is the answer
Bond prices and interest rates have an inverse relationship, so when market interest rates rise, existing bonds with lower coupon rates become less attractive, resulting in a fall in their market price.
Test yourself for real
Take a full NISM Series X mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.