SESK: Stuff Everyone Should Know · sesk.info/teen-invest-bond-rates-rise
If interest rates rise, what may happen to selling an older, lower-rate bond?
You may have to sell it at a discount.
- Sell it at a discount ✔
- Sell it for a bonus
- 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.
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.
- 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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