Mercer Advisors
Sharing Knowledge

Question

Why do bond prices fall when interest rates rise?

Answer

Most bonds pay a fixed coupon. When newer bonds offer higher rates, older bonds with lower coupons typically become less attractive, so their prices usually fall until their yields become more competitive.

Related FAQs

What is tax-loss harvesting?

How do I diversify concentrated stock without triggering huge taxes?

What is portfolio diversification?
Investment Management Portfolio Management Young Professionals Retirement Planning Living in Retirement Building Wealth Investors Diversification FAQs
Last Updated June 23, 2026
Previous Next

Further Learning

Listen
Investment Management Podcast

Episode 39 – Financial Planning Is a Prerequisite to Successful Investing

Don Calcagni, Chief Investment Officer, breaks down why financial planning should be the essential first step to building, sustaining, and transferring wealth.

Listen
Investment Management Podcast

Episode 525 – Investment Philosophy vs. Strategy

Discover how your core beliefs shape investment decisions. John Walker and Jason O’Meara break down philosophy vs. strategy for long-term success.

Women & Wealth Guide

Retirement Planning for Single Women: A Complete Guide

A practical guide to retirement planning for single women — covering Social Security, long-term care, estate planning, and an age-specific checklist.

Women & Wealth Article

Beyond Business Growth: Wealth Planning for Women Founders

Many women founders face a three-way financial pull. Learn how to help protect personal wealth, optimize taxes, and plan your business exit — all at once.

Back to Sharing Knowledge

About Mercer Advisors

We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.

Explore Our Solutions

Financial Planning
Estate Planning
Tax Planning & Preparation
Insurance Solutions
Investment Management
Trustee Services

Want to learn more about Mercer Advisors?

Let’s Talk