What will happen to bond prices if terrorism ended and the world's nations unilaterally disarmed and adopted free trade policies?

Bond price is the current discounted value of future cash stream produced by a bond. It discusses to the sum of the present values of all probable coupon payments plus the present value of the par value at maturity. If violence ended and the world’s nations individually disarmed and adopted free trade policies, bond prices would drop quickly which means there would be no more wars.  If there were no more terrorism, there would be no more counterfeit wars. (Recall that World Wars 1 and 2 started with terrorist acts.) If there were no more wars, the Government wouldn't require to purchase weapons. If the Government didn't need weaponries, then it wouldn't need to trade bonds to increase the money to compensate for them. Therefore, the value of bonds would be reduced. 

answer; provide for the common defense: