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User gweterhwqg
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2 years (since Aug 26, 2022)
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Most bonds can be sold by the initial shareholder to other investors after they have actually been issued. To put it simply, a bond financier does not have to hold a bond all the method through to its maturity date. It is also typical for bonds to be repurchased by the borrower if rate of interest decrease, or if the customer's credit has actually enhanced, and it can reissue new bonds at a lower expense.
For example, say an investor purchases a bond at a premium $1,090 and another financier purchases the same bond later when it is trading at a discount rate for $980. When the bond develops, both investors will get the $1,000 stated value of the bond. is the interest rate the bond issuer will pay on the face worth of the bond, expressed as a portion.
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