> If you hold a bond to maturity you get it’s NPV This is flawed logic. The NPV is not a real, tangible dollar amount. It is a calculation, based on the presum

> If you hold a bond to maturity you get it’s NPV This is flawed logic. The NPV is not a real, tangible dollar amount. It is a calculation, based on the presumed yield of a theoretical set of alternative investment opportunities, of the Net PRESENT (today, right now) Value of the bond. This number is less than the sum of the bond's future payments, because the NPV is attempting to determine the current value of payments scheduled for receipt in the future. In other words, if you are owed $1000 to be paid on Christmas Day of this year, the Net Present Value is less than $1000.