Apparently there is some confusion. The variety of bond funds is vast. There are municipal funds, bond-index funds and funds that mix and match from many categories. The credit risk of bond funds is only as good as the bonds it holds. Junk is still junk, though blending junk with non-junk can lower the impact of nasty surprises.
Foreign bonds carry significant risks from changes in currency values.
But bond funds are not surrogates for holding a bond to maturity. They pass along capital gains or losses to the shareholders, along with the interest paid by the bonds. Fund performance is measured by total return, the percentage change in the overall value of the investment. Net asset value determines the purchase price of shares in a bond fund, just as it does with most mutual funds. The net asset value may change every day because bond prices can change every day as interest rates move.