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User lefwenlggp

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About: Most bonds can be sold by the initial shareholder to other investors after they have actually been released. Simply put, a bond financier does not have to hold a bond all the method through to its maturity date. It is also common for bonds to be bought by the borrower if rate of interest decrease, or if the borrower's credit has actually enhanced, and it can reissue brand-new bonds at a lower expense.

For example, state a financier purchases a bond at a premium $1,090 and another financier purchases the very same bond later when it is trading at a discount rate for $980. When the bond grows, 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 portion.

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