Effect of Interest Rate Volatility on Bond Prices

In the context of fixed income securities, understanding how interest rate volatility affects bond prices is crucial for investors. Interest rate volatility refers to fluctuations in interest rates over time, which can have significant implications for the valuation of bonds and other fixed income instruments. When considering the term structure of interest rates, one must also evaluate how changes in volatility might influence the yield curve.

Consider a bond with a fixed coupon rate. If interest rate volatility increases, what is the most likely effect on that bond's price?