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User margaraamm

Member for: 2 years (since Aug 26, 2022)
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About: The majority of bonds can be offered by the preliminary shareholder to other investors after they have been released. Simply put, a bond financier does not need to hold a bond all the method through to its maturity date. It is likewise common for bonds to be repurchased by the borrower if rates of interest decline, or if the customer's credit has actually enhanced, and it can reissue brand-new bonds at a lower cost.

For example, state an investor purchases a bond at a premium $1,090 and another investor buys the very same bond later when it is trading at a discount rate for $980. When the bond develops, both financiers will receive the $1,000 face worth of the bond. is the interest rate the bond issuer will pay on the face value of the bond, expressed as a portion.

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Score: 10 points (ranked #189)
Title: Newbie
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If you don’t ask, the answer is always NO!
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