Final answer:
When interest rates rise, bond prices decrease, and this effect is more pronounced for bonds with a longer time to maturity due to the longer period over which the lower yield is locked in.
Step-by-step explanation:
When interest rates rise, bond prices decrease. This inverse relationship is a fundamental principle in the bond market. The change in bond prices is more pronounced for bonds with a longer time to maturity. This is because the longer the maturity, the greater the period over which the investor is locked into a lower yield, relative to the new higher interest rates. Hence, the bond's present value, which represents the current worth of the bond's future payments discounted at the new higher rates, becomes lower, leading to a decrease in its market price.