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User joyceyzxqc
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2 years (since Aug 30, 2022)
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Many bonds can be offered by the preliminary shareholder to other financiers after they have actually been released. In other words, a bond investor 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 borrower's credit has enhanced, and it can reissue new bonds at a lower cost.
For example, state a financier 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 face worth of the bond. is the interest rate the bond company will pay on the face worth of the bond, expressed as a percentage.
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