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User luanonhing
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2 years (since Aug 30, 2022)
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Most bonds can be sold by the initial shareholder to other financiers after they have been provided. To put it simply, a bond investor does not have to hold a bond all the method through to its maturity date. It is also common for bonds to be repurchased by the customer if interest rates decrease, or if the customer's credit has actually enhanced, and it can reissue brand-new bonds at a lower cost.
For example, state a financier purchases a bond at a premium $1,090 and another investor buys the same bond later on when it is trading at a discount rate for $980. When the bond grows, both investors will receive the $1,000 stated value of the bond. is the rate of interest the bond issuer will pay on the face worth of the bond, revealed as a percentage.
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