Question
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!
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!
Answers
David
And is the bond price=face value?