 Okay, $10,000, you give them 10 grand, and they guarantee you pay you 5% interest rates every year. Okay, you get really excited, and you tell your friends about this bond. Hey, look at this bond I got. Pay me 5% every year. Sweet. All right, your friend goes down to City Hall and tries to get one of these bonds, but now interest rates have gone up, and now the city is issuing 5.5% bonds.