The price of 30 year coupon-only bonds have increased by 30%+ in the last three years alone, because a constant coupon stream becomes more valuable if interest rates are lower. (The parallel to a rental real-estate investment is obvious.)
I understand that point, but a real question. If you buy a 30 year coupon paying bond at $1 with a 5% yearly payment, won't it be a $1 bond in $30 years, regardless of whether it is $1.05 at year 28?
