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User urutiujgue

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About: Many bonds can be sold by the initial bondholder to other financiers after they have actually been provided. 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 common for bonds to be bought by the borrower if rate of interest decrease, or if the debtor's credit has enhanced, and it can reissue brand-new bonds at a lower cost.

For example, say a financier purchases a bond at a premium $1,090 and another financier purchases the exact same bond later on when it is trading at a discount 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 provider will pay on the face value of the bond, revealed as a percentage.

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