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User alannaxcut
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Many bonds can be offered by the preliminary shareholder to other investors after they have actually been released. To put it simply, a bond investor does not have to hold a bond all the method through to its maturity date. It is also common for bonds to be repurchased by the customer if rate of interest decline, or if the debtor's credit has improved, and it can reissue brand-new bonds at a lower cost.
For instance, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later on when it is trading at a discount rate for $980. When the bond grows, both investors will receive the $1,000 stated value of the bond. is the rate of interest the bond company will pay on the face worth of the bond, expressed as a percentage.
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