If interest rates rise, what may happen to selling an older, lower-rate bond?

You may have to sell it at a discount.

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  1. Sell it at a discount ✔
  2. Sell it for a bonus
  3. Nothing changes

Why: Newer bonds pay more, so buyers want a lower price for your older, lower-paying bond.

Huh, didn't know that: Rising interest rates make newly issued bonds more appealing to investors.

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What's another name for a long-term investment? A failed short-term investment.
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References

Answer: Sell it at a discount. Newer bonds pay more, so buyers want a lower price for your older, lower-paying bond.

  1. Investor.gov: Bonds www.investor.gov/introduction-investing/investing-basics/investment-products/bonds-or-fixed-income-products/bonds
    To sell an older bond with a lower interest rate, you might have to sell it at a discount.
    Checked 2026-10-10.

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