Interest rate risk

Refer to how the bond price changes in response to the interest rate movement. The risk not only depends on direction of change in market interest rate but also its magnitude. When interest rates go up, investors’ bond prices fall. When interest rates go down, bond prices rise

Coupon rate < yield =""> Price < Par value {bond trades at a discount}
Coupon rate = Yield => Price = Par value {bond trades at par}
Coupon rate > Yield => Price > Par value {bond trades at a premium}