You are right, but... You get a coupon payment every 6 months for 10 years and you have to do something with that money. It can have a compounding effect if y

You are right, but... You get a coupon payment every 6 months for 10 years and you have to do something with that money. It can have a compounding effect if you aren't just spending it on beer and Cheetos. So for most people, the interest does compound - just not directly.