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User aedelypotp
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Many bonds can be offered by the initial shareholder to other investors after they have been provided. To put it simply, a bond investor does not need to hold a bond all the way through to its maturity date. It is also typical for bonds to be repurchased by the debtor if interest rates decline, or if the debtor's credit has actually enhanced, and it can reissue new bonds at a lower cost.
For instance, say a financier purchases a bond at a premium $1,090 and another financier buys the same bond later on when it is trading at a discount for $980. When the bond matures, both financiers will receive the $1,000 stated value of the bond. is the interest rate the bond company will pay on the face worth of the bond, expressed as a percentage.
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