[prottog]

Exactly. You're mark-to-market red on your bonds, since if you tried to sell your 2%-yielding bonds in a market where new bonds yield 4% obviously your bond will be worth less than what you bought it for; but you'll still continue to receive those coupons at 2% for the lifetime of the bond.

[rubiquity]

Yes you still receive your coupon. My point was that existing bonds coupons don't change.