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Here's another example comparing apples and oranges...which is what I think you are doing:

I invest $100,000 in a bond fund and interest rates rise because inflation rises. At the end of 5 years, my fund is worth only $90,000.

You, on the other hand, invest $100,000 in a 5 year bond. At the end of 5 years, you get your $100,000 back while I only got back $90,000. The difference is that my fund kept reinvesting matured/called bonds along the way at higher interest rates. So my higher interest received plus my $90,000 at the end should (assuming all other aspects are equal) be the same as your lower interest plus your $100,000. But you THINK you are ahead of the game because you got your $100,000 back as a lump sum while I got some of mine back in the form of higher interest.
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