Impact of Rising Interest Rates on Bond Prices

Understanding the implications of bond market dynamics is essential for fixed income investors. Consider a bond issued by a corporation with a fixed coupon rate of 8%, maturing in 15 years. The bond was initially issued at par value of $1,000. Recently, due to changes in market interest rates, this bond's price has fluctuated significantly. With the current yield on similar bonds rising to 10%, investors are concerned about how the price of this bond will adjust in the secondary market.

Given this scenario, which of the following statements is true regarding the bond's price adjustment when market interest rates rise to 10%?