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User maldorysni
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2 years (since Aug 30, 2022)
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Many bonds can be sold by the preliminary shareholder to other financiers after they have actually been issued. To put it simply, a bond investor does not have to hold a bond all the way through to its maturity date. It is also typical for bonds to be repurchased by the customer if rates of interest decline, or if the debtor's credit has improved, and it can reissue new bonds at a lower cost.
For example, say an investor 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 develops, both financiers will get the $1,000 face value of the bond. is the interest rate the bond provider will pay on the face worth of the bond, revealed as a percentage.
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