The prices of these bonds tend to decline when interest rate rises.a.Municipal bondsb.Foreign bondsc.Corporate bondsd.Treasury bonds

All of the bonds mentioned - municipal bonds, foreign bonds, corporate bonds, and treasury bonds - tend to decline in price when interest rates rise. Here's why:

1. Municipal Bonds: These are issued by local governments or their agencies. When interest rates rise, newer bonds come with higher yields to attract investors. This makes the older bonds with lower yields less attractive, causing their prices to fall.

2. Foreign Bonds: These are issued by foreign governments or companies. They are also affected by interest rates. When rates rise, investors can get higher returns from new bonds, making the older ones less attractive.

3. Corporate Bonds: These are issued by corporations. Like the others, their prices fall when interest rates rise because new bonds offer higher yields.

4. Treasury Bonds: These are issued by the federal government. They are considered the safest bonds, but they are also affected by interest rates. When rates rise, the prices of existing treasury bonds fall.

In summary, the price of a bond and interest rates have an inverse relationship. When interest rates rise, the prices of existing bonds fall because new bonds are issued with higher yields to attract investors.