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Rising interest rates will cause a      for those individuals holding bonds

Rising interest rates will cause a      for those individuals holding bonds

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Rising interest rates will cause a loss for those individuals holding bonds.

Interest rates are inversely proportional to market prices of bond so if the interest rates increase then the market price of bond will decrease because the bond holder will have to sell the bond at a discount.This is due to the fact that since the new bonds issued at the same price will fetch higher interest therefore the buyers will go for the bonds with higher interest rate.So in order to sell the bonds the individual will have to sell them at a discount.

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