When talking about bond values and yields changing in response to market interest rates, first need to make it clear what both are. Bond values is the amount that you need to pay to purchase bonds while bond yields is the return you receive in the form of interest $($Lioudis$,2024).$ If the interest rates rise, the existing bonds with a lower fixed interest rate fall, driving up demand for them and increasing market value $($Lioudis$,2024).$ When a bond's price falls, it's yield rises, with similar that when the price rises, its yield falls because you're dividing the interest payment by a larger number $($Liodis$,2024).$ Zero$-$coupon bonds are when bond values move in the opposite direction of interest rates, where they do not pay regular interest and derive all of their value from the difference of the purchase price and the par value paid $($Liodis$,2024).$ The thing about these bonds, they lock in the bond yield, which is something investors love $($Liodis$,2024).$