Let's say I have a bond that has a face value of $100, yields 1%, and matures in 1 year. It's value today is $99. Now interest rates go to 2%. That bond is now worth $98, because 1 year from now, at 2% interest, it will be worth $100.
But for longer term bonds (30 years, say), what you said can be true.
Let's say I have a bond that has a face value of $100, yields 1%, and matures in 1 year. It's value today is $99. Now interest rates go to 2%. That bond is now worth $98, because 1 year from now, at 2% interest, it will be worth $100.
But for longer term bonds (30 years, say), what you said can be true.