When interest rates rise, the price of fixed-rate corporate bonds falls because the bond ' s coupon payments become less attractive compared to new bonds issued at higher rates.
D is correct as bond prices move inversely to interest rates.
A is incorrect because bond prices fluctuate with interest rate changes.
B is incorrect because bond prices revert to par only at maturity.
C is incorrect because prices do not appreciate when rates rise.
[Reference: SIE Study Guide, Chapter 3: Interest Rates and Bond Prices, , , , , ]
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