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User sionnaxmky
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2 years (since Sep 2, 2022)
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Many bonds can be sold by the preliminary shareholder to other financiers after they have been issued. To put it simply, a bond investor does not have to hold a bond all the method through to its maturity date. It is likewise typical for bonds to be repurchased by the customer if interest rates decrease, or if the borrower's credit has actually enhanced, and it can reissue new bonds at a lower cost.
For instance, say an investor purchases a bond at a premium $1,090 and another financier buys the 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 value of the bond. is the interest rate the bond company will pay on the face worth of the bond, revealed as a portion.
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