Price Sensitivity Sample exam because, interest, should, market, having

liquidity

Is it true that:
an optionfree bond’s price sensitivity is negatively correlated with the level of market interest rates?
I thought the answer should be No, because if level of market interest rate is low, the bond would be sold a premium, having less interest rate risk and less duration, price sensitivity should be lower. Therefore the price sensitivity would be positivity correlated with the market interest rates.
Am I wrong?

Viceroy

doesnt it just mean rates up = price down?

trogulj

means rates up = duration down

KungFuPanda

to see why this is true, look @ the slope of a priceyield curve

fishmarket

CFAI text pg 268 (Equity and Fixed income: Reading 63, topic impact of yield level) read the last para and it clearly says, interest rates high price sensitivity low and also interest rates low price sensitivity high.