Homework Help: Marcoeconomics

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!

Marcoeconomics - David, Tuesday, February 17, 2009 at 9:39pm
And is the bond price=face value?

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