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User bastumcsra
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2 years (since Sep 2, 2022)
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Most bonds can be sold by the initial bondholder to other investors after they have actually been provided. Simply put, a bond financier does not need to hold a bond all the way through to its maturity date. It is likewise common for bonds to be redeemed by the borrower if rates of interest decline, or if the debtor's credit has actually improved, and it can reissue new bonds at a lower expense.
For instance, say an investor purchases a bond at a premium $1,090 and another financier purchases the exact same bond later on when it is trading at a discount rate for $980. When the bond develops, both investors will receive the $1,000 face value of the bond. is the rate of interest the bond provider will pay on the face value of the bond, revealed as a portion.
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