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User angelmhpvg
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2 years (since Sep 2, 2022)
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Many bonds can be sold by the initial bondholder to other investors after they have actually been provided. Simply put, a bond financier does not have to hold a bond all the way through to its maturity date. It is also typical for bonds to be bought by the debtor if rate of interest decrease, 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 investor purchases the exact same bond later on when it is trading at a discount for $980. When the bond develops, both financiers will receive the $1,000 face worth of the bond. is the interest rate the bond provider will pay on the face value of the bond, revealed as a percentage.
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