Conceptually,why Does a Bond's Price Fall When Required Returns Rise

question 23

Essay

Conceptually,why does a bond's price fall when required returns rise on an existing fixed income security?

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Definitions:

Learning

The method of obtaining fresh comprehension, competencies, ethical standards, or inclinations via education, exposure, or guidance.

Instincts

Innate, inherited patterns of behavior often seen in animals, driving certain actions without the need for learning.

Reflexes

Automatic, involuntary responses to specific stimuli that are hardwired into the nervous system.

Sensory Stimuli

External factors or occurrences that are detected by the body's senses, leading to responses or reactions.