Question about Bonds?

Ok, so I was wondering the following about Bonds. 1.) Suppose the U.S. Gov't issues US Bonds with a Face Value of 10,000. The interest rate in the economy is currently 4% and the bonds are redeemable in 30 years. As such, the bonds are currently worth 10,000/1.04^30 or 3083.187 dollars, right? (I am, for... show more Ok, so I was wondering the following about Bonds.

1.) Suppose the U.S. Gov't issues US Bonds with a Face Value of 10,000. The interest rate in the economy is currently 4% and the bonds are redeemable in 30 years. As such, the bonds are currently worth 10,000/1.04^30 or 3083.187 dollars, right? (I am, for simplicity, assuming that there are no coupon payments on the bonds).

2.) Now, suppose China comes out tomorrow and decides to sell all of the U.S. Savings bonds it has bought from the U.S.. Simple Supply and Demand would tell us that an excess supply would cause the price to drop, right? However, where would present value fit into this? Would the excess supply of bonds prices to drop below their calculated current "Present Value" and thus cause them to sell at Discount? Also, how would an excess supply of bonds change the interest rate in the economy? I am assuming the U.S. gov't doesn't step in to change the money supply or buy back the bonds at a cheaper price.
Update: Going off what Big Zack said, excess supply would drive the price of the bonds down (even lower than what the were issued at or the new time-adjusted Present Value)? As such, the yield would increase, because of excess supply? What equation describes by how much the price of the bond will change in comparison to... show more Going off what Big Zack said, excess supply would drive the price of the bonds down (even lower than what the were issued at or the new time-adjusted Present Value)? As such, the yield would increase, because of excess supply? What equation describes by how much the price of the bond will change in comparison to it's pre-market event price? I.E. what relationship exists between excess supply and the % change in bond price?
Update 2: Thanks Big Zack,

One final thing though, an excess supply of bonds would impact the price, right? I.E. we can apply the principles of supply and demand to Bonds and say that if the supply or demand curves change, then the price of the bonds will be affected?
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