Why do bond values go down when interest rates go up?

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Bond values go down when interest rates go up because the value of an existing bond decreases in comparison to bonds with higher yields in the market. This is because investors would rather put their money into new bonds offering a higher yield than invest in existing bonds yielding less. As a result, when interest rates rise and new bonds offer higher yields, the prices of existing lower-yielding bonds will decrease due to decreased demand.