But consider that most banks, card companies, etc are more like retailers. They buy money at a certain price X (their funding costs) and sell it at Y (loan/card interest rates). As long as Y-X is positive, they're broadly OK.
The ultimate owners of these bonds are pensions, insurance, endowments, and other large actors who are basically price takers. They have huge piles of money to invest ($xx/xxx billion), and limits in how much risk they can take (e.g. only investment-grade debt) but beyond that, are looking for the best price offered given how much they need to invest, and matching the term (e.g. 5 years) to their portfolio needs. These people tend to hold bonds to maturity and just reinvest the proceeds when they mature. They don't sell them on the secondary market as much.
When those bonds are suddenly worth 5% or 10% less due to rapidly rising interest rates, on top of 7% inflation, they'll be pissed. In any case, you're basically causing the retirement funds of millions-of-Americans to suddenly decline in value.
This decline in value is arguably more important than the coupon value itself. That's all I'm trying to say. If you focus 100% on the coupon rate, you're ignoring the greater effects of the market.
Last year, if you bought 10-year bonds, they'd be something like 2% interest rate. Today, its 2.38%. This means that all 10-year bonds bought in 2021 (aka: today a 9-year bond) is 2%, or roughly $11,800 value remaining.
But a 10-year bond in 2022 is 2.38%, or roughly $12,380.
Relative to the 2021 bonds, you just "dropped the value" of 2021 bonds by $500-per-$10k or so. Literally, in the space of a few weeks, everyone who had 10-year-bonds from 2021 just __LOST__ money on the interest rate hike.
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Since banks and other large investors all own substantial amounts of bonds, the short-term effects of interest-rate changes on the _VALUE_ of bonds (ie: the 2021 issues) is arguably more important than the coupon itself.
If we're looking at +1% increase this year (to a 10Y rate of 3%), then a 10-year $10k bond 10Y @ 3% will have a Yield-to-Maturity value of $13000, meaning that the 2021-issues are worth something like 12% LESS.
EDIT: That's just the federal bond market. When you consider that car-loans, credit-cards, and Mortgages and HELOCs are also going to change in reaction to this (since these are higher-risk, a +1% chance to the "risk-free" federal rate probably will be a +1.5% to the other rates), the value of mortgages, credit card debt, car loans (etc. etc.) will similarly drop by 10%+.
Also consider what it will do to home prices. +1% interest rate to any mortgage will cause the monthly payments to skyrocket by hundreds of dollars, which will force home-prices down.