Yes, and if you hold it for the 10 year term, you do get the money back, plus a small amount of interest. The problem is that now, you can buy bonds with a shor

Yes, and if you hold it for the 10 year term, you do get the money back, plus a small amount of interest. The problem is that now, you can buy bonds with a shorter term that provide higher interest rates. Thus to sell the old bonds now, you have to sell them for less than you paid for them so that the return on them becomes competitive with buying a new bond.