How Much Should You Pay for an Asset That Throws Off $1,000 Every Year?

When interest rates rise, bond prices fall or when interest rates fall, bond prices rise. What happens is it entitles the owner to $1,000 payment every year going forward indefinitely. The asset we're talking about does not that it's a percentage but what this thing gets out of construction. If you had $20,000 and interest rates are 10%, now, if you invested that at the going rate of interest, you'd be getting $2,000 a year.