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User midinglxza

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About: Many bonds can be sold by the initial shareholder to other investors after they have actually been issued. To put it simply, a bond financier does not have to hold a bond all the way through to its maturity date. It is also common for bonds to be redeemed by the debtor if rates of interest decrease, or if the borrower's credit has actually improved, and it can reissue brand-new bonds at a lower cost.

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

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