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?

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.

KungFuPanda

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

trogulj

means rates up = duration down

Viceroy

doesnt it just mean rates up = price down?