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User sivneywfom
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2 years (since Aug 26, 2022)
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Most bonds can be offered by the initial shareholder to other financiers after they have been issued. Simply put, a bond investor does not have to hold a bond all the method through to its maturity date. It is likewise common for bonds to be bought by the customer if rate of interest decrease, or if the borrower's credit has actually improved, and it can reissue new bonds at a lower expense.
For example, state an investor purchases a bond at a premium $1,090 and another financier buys the same bond later on when it is trading at a discount rate for $980. When the bond matures, both investors will get the $1,000 stated value of the bond. is the rate of interest the bond company will pay on the face value of the bond, expressed as a percentage.
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