How falling currency and interest rate effects the bond prices?

Question

Is there such thing exist, if yes then why it is risk free?

Answer 1

Yield at maturity is fixed so if interest rate goes down market price of the bond increase or vice-versa.

Lets see this with example -
There is a bond of $100 for two years at interest rate of 10% means at the end of two years bond holder has the right to receive $121.
If interest rate remains constant the bond will trade at $110 after one year. Now say if interest rate goes down to 5% (from 10%) then bond will trade close to $115 because market is expecting 5% return and vice-versa.

Answer 2

Higher the interest rate, lower the bond price;
Currency rate depends on import/exports of the country; countries try to weaken their currency so that they can export more; Some countries try to control their currency from falling by increasing their interest rates.