It's a very different thing to compare a fund vs holding the actual certificate. Same with the Bond Mutual Funds vs holding a Bond.
The Funds will decline because you have to sell old Bonds at a discount to buy up the new higher interest payout bonds. But if you held on to the original bond, then you'd still get the fixed payout. You'd just miss out on the opportunity of the new higher payout bonds on the market.
The Funds will decline because you have to sell old Bonds at a discount to buy up the new higher interest payout bonds. But if you held on to the original bond, then you'd still get the fixed payout. You'd just miss out on the opportunity of the new higher payout bonds on the market.