You recently bought

a $10,000 10
year US
government bond that guarantees you 2% interest per year

Question

You recently bought a $10,000 10 year US government bond that guarantees you 2% interest per year

for each of the next 10 years, after which you will receive your initial $10,000 back. If interest rates in the US increase as a result of a strong economy, what impact will this have, if any, on the market value of your bond?

Macroeconomics