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User kethanajzm
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2 years (since Aug 26, 2022)
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The majority of bonds can be offered by the preliminary shareholder to other financiers after they have been issued. To put it simply, a bond investor does not need to hold a bond all the way through to its maturity date. It is also common for bonds to be redeemed by the borrower if rates of interest decline, or if the borrower's credit has actually improved, and it can reissue new bonds at a lower cost.
For example, say a financier purchases a bond at a premium $1,090 and another financier purchases the exact same bond later when it is trading at a discount rate for $980. When the bond grows, both investors will receive the $1,000 face worth of the bond. is the rate of interest the bond provider will pay on the face worth of the bond, revealed as a portion.
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