Not really--if interest rates decline (either in the overall economy or if a bond's issuer is seen as becoming less risky), the value of a bond will go up. The 10 Year US Treasury bond increased by over 10% last year, for example.
Also I agree with you about ending the deductibility of interest (for other reasons as well), but I'm not sure why you say the distinction between debt and equity is diminishing--convertible debt has been around for a long time.
Not really--if interest rates decline (either in the overall economy or if a bond's issuer is seen as becoming less risky), the value of a bond will go up. The 10 Year US Treasury bond increased by over 10% last year, for example.
Also I agree with you about ending the deductibility of interest (for other reasons as well), but I'm not sure why you say the distinction between debt and equity is diminishing--convertible debt has been around for a long time.