True, if the market rates decrease from 7% to 6%, the market value of a 6%, 30-year $1000 bond will likely increase to its par value or close to it.
What happens as the market rate falls
When market interest rates decline, the value of existing bonds with higher coupon rates becomes more attractive because they offer higher interest than newly issued bonds.
Therefore, the price of the existing bond would typically rise in the secondary market to align its yield with the current market rate, potentially reaching or nearing its par value.
question
T/ F
If market rates go from 7% to 6%, the market value of a 6%, 30 year $1000 bond will be its par value.