>>4285746 (PB)

A bond pays a fixed rate of interest; if interest rates go up and you sell the bond, the price will be adjusted so the buyer receives the prevailing rate of interest. VERY simplified, if you buy a $100 bond that pays 10% interest and matures in one year, you would receive $110 at maturity. If interest rates were raised to 15% and you sold that bond, you would only receive $95 - and the buyer would get 15%, or $15, on their investment. (This isn't entirely accurate, but close enough for you to understand the concept.)