Bond hends rocene fwed miterest payments from most of their invnstments Bonat fund distributions recewe more favorable tax treatment than that of dividend funds: When inteveat rates rime, the net anset value per unit (NAMPO) of bond funds decreasen. Whereas with dividend hunds it rises. The feturn of dividend tunds telies only on interest rates, whereas with bond funds. the rehum also degends on the general direclicen ur wiock risikets