Everything sounds super-obvious and already-commonly-known to me until: > conomic theory says asset prices should be determined by the value of future income f

Everything sounds super-obvious and already-commonly-known to me until: > conomic theory says asset prices should be determined by the value of future income flows. So how much is a bulb that produces £100 of tulips annually worth? If real interest rates on other assets are say 10%, then people would be willing to pay £1,000 for the bulb to get the same return. If they fall to 5%, the value of that same stream of flowers doubles to £2,000. I don't get this at all. I don't see how it would sell for over £100 as long as interest rates are positive.