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User aubinavnyh

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About: A lot of bonds can be sold by the preliminary bondholder to other financiers after they have been issued. Simply put, a bond investor does not need to hold a bond all the method through to its maturity date. It is also typical for bonds to be bought by the debtor if rate of interest decline, or if the borrower's credit has actually enhanced, and it can reissue new bonds at a lower cost.

For instance, state 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 grows, both financiers will get the $1,000 stated value of the bond. is the rate of interest the bond issuer will pay on the face worth of the bond, expressed as a percentage.

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If you don’t ask, the answer is always NO!
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