How do Treasury Bonds work and how do rising interest rates cause bond value to fall?

Question

Trying to fully understand how Treasure Bonds value is diminished when federal interest rates rise.

In: 8

Answer 1

You bought a bond a year ago at 3% interest that you’re looking to sell. Interest rate is now 4%. If you want me to buy your bond at 3% instead of buying a 4% bond from the treasury you’d sell it to me at a discount to entice me