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The NAV of bond fund shares decreases when interest rates rise. According to published data, in 1999
many bond funds had negative returns: ie, they lost more in NAV due to increasing interest rates than they
gained in the supposedly high dividends they paid. Typical bond fund return was about -2% last year, while
the S&P 500 gained 21%.
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Thanks for the quickie tutorial on bond funds. I guess at this point in my education I'm still at the point where I think the word "Bond" guarantees low but always positive changes in NAV.

It's not very much money, so we'll take it out of there and put it somewhere else, and forget about the whole thing. Now I just have to get my mother-in-law to do this without making her angry.

-Booj
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