Posted by **David** on Tuesday, February 17, 2009 at 8:35pm.

if Bond price= the discounted value of all the future income it will generate

then does it mean that the buyer of the bond earn nothing?

Because he in fact need to pay the discounted value of the future income(interest) which is said to be earned by him when buying the bond.

THEN HOW CAN HE EARN THE INTEREST FROM BUYING BONDS?

if not, what can he earn?

I really don't understand,please explain in details,thx!

## Answer this Question

## Related Questions

- finance - The Corner Grocer has a 7-year, 6 percent annual coupon bond ...
- finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...
- finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...
- FINANCE - 12. Bond Quotes Consider the following bond quote: a municipal bond ...
- math/finance - Assume that you are considering the purchase of a 30-year, ...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Math - 1. Jill has a bond with a face value of $1,000. The bond has a coupon ...
- Marcoeconomics - According to the formula, Bond price= y/r so bond price has a ...
- Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...