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User gwedemybsi
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2 years (since Aug 27, 2022)
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https://openclassrooms.com/en/members/1bhbdz3r8gm1
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Many bonds can be sold by the preliminary shareholder to other investors after they have actually been issued. To put it simply, a bond investor does not have to hold a bond all the method through to its maturity date. It is likewise typical for bonds to be redeemed by the debtor if rate of interest decrease, or if the borrower's credit has improved, and it can reissue new bonds at a lower expense.
For example, 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 rate of interest the bond company will pay on the face value of the bond, revealed as a percentage.
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