The book says: the interest rate risk in bonds is the change of bond income caused by the change of interest rate level, which is the main risk faced by bond investors. Because the market interest rate is an integral part of calculating the discount rate of bond present value, the trend of bond price and interest rate level is opposite.

Simply put, interest rates go up and bond prices go down. At this time, the net fund value of major investment bonds declined.

The following only explains the relationship between bond price fluctuation and interest rate:

For example, an investor pays 100 yuan to buy a one-year bond and holds it for one year.

If the market interest rate is 8%, the market price of the bond is:100/(100%+8%) = 92.59 yuan.

But if the market interest rate is 10%, then the market price of the bond is:100/(100%+10%) = 90.91(yuan). Less than above 1.68 yuan.

This is only the simplest calculation method. As can be seen from the calculation formula, the interest rate is in the denominator position in the calculation process. Therefore, if interest rates are raised, bond prices will fall. It is worth reminding that the calculation here is the fluctuation of bond prices, not the fluctuation of the net value of bond funds.

I hope it will help you, and I hope you will forgive my mistakes.