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I guess the part that is most confusing is that there is a gain when the price goes up and I'm not sure how yeild or NAV affects that. Maybe using numbers will help explain it. For example:

Buy: 100 @ $10.00
Sell: 100 @ $11.00

That results in a gain for your portfolio plus any monthly payouts that were accumulated. If during the time I'm holding that fund, buyer demand decreases, are you saying the price is not likely to reach $11.00 and could in fact go below $10.00? In that case, it's clear there will be a loss. It also means the bond trails the market decline. Bonds and stocks declined together in other words.

If the only affect is that the monthly payments decrease, it doesn't matter so much because there is still a gain to be had from the price increase.

Where is the FAQ for this board located?
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