CSL Chart, page-930

That is highly misleading. With every rise in the interest rates the capital value of the bond collapses by a much greater multiple as the payout ratio is fixed when issued and the value is a function of the discounted income stream until completion. So a 2% bond has to fall in value to match a 3.8% effective return when interest rates rise to that. It is precisely this mechanism that caused the series of banks to fail in the US over the last few months as their effective liquidity dropped to below the level to meet deposits expected withdrawals because the market value of their liquidity held in "risk free" Gov bonds fell to 30% and less of the face value (the value at which they bought them) as the rates rose. "Risk free" is a misnomer when it comes to bonds, it simply means there is nothing less risky in a given economy because if the Gov can't meet the bond buy-back price they also will not be able to meet the implied obligation in their universal debt instrument - currency. They are certainly not risk free when viewed on a global, multi-country basis under which a trans-national corporation like CSL operates.