That’s true only if the bond has an “infinite” term. Meaning it pays interest forever but you never get your initial principal back If a bond has say a one-yea

That’s true only if the bond has an “infinite” term. Meaning it pays interest forever but you never get your initial principal back If a bond has say a one-year term then it won’t lose 50% of its value if interest rates double from 1 to 2 percent because you still get your original full investment back after one year. It’s value instead drops by about 1%. For a longer term example, a bond purchased for $1,000 and 1% interest rate with 30 years left is worth $776 if interest rates rise to 2% Source: https://m.free-online-calculator-use.com/bond-value-calculator.html https://m.free-online-calculator-use.com/bond-value-calculat...