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  • Abhineet Kapil thinks this is interesting:

This is no coincidence—in general, when coupon and yield are equal, the price of the bond is par. As price rises from here, say to $102, the yield falls to 4.5%, while a drop in price, for example, to $97, results in the yield rising to 5.7%. The price/yield equation also makes it clear that as the yield is in the denominator, an increase in the yield therefore would lower the price.


Cover of Interest Rate Markets: A Practical Approach to Fixed Income


yield price relation.