Marcoeconomics
posted by David .
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!

And is the bond price=face value?
Respond to this Question
Similar Questions

finance please help
1. Calculate the present value of an investment given the following information: (a) Years—20, (b) Rate—10%, and (c) Future Value—$20,000. 2. Calculate the future value of an investment given the following information: (a) Years—10, … 
finance
A manufacturing company issues a bond with a 100,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons, and the yield to maturity is 6.8%, what percentage of the bond's price is the present … 
finance
1. Yest Corporation's bonds have a 15year maturity, a 7% semiannual coupon, and a par value of $1,000. The market interest rate (r) is 6%, based on semiannual compounding. What is the bond’s price? 
finance
the corner grocer has a 7year, 6 percent annual coupon bond outstanding with a $1,000 par value. the bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases … 
finance
the corner grocer has a 7year, 6 percent annual coupon bond outstanding with a $1,000 par value. the bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases … 
finance
The Corner Grocer has a 7year, 6 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases … 
FINANCE
12. Bond Quotes Consider the following bond quote: a municipal bond quoted at 101.25. If the municipal bond has a par value of $5,000, what is the price of the bond in dollars? 
Business Math
Bond Pricing: A 20year corporate bond has a maturity value of $25, 000 and coupons are paid at 5% at the end of each year. If an investor wants to earn a yield of 7% compounded semiannually, what should she or he pay for this bond? 
math algebra
A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years? 
math algebra
A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years?