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User wychanbcer

Member for: 2 years (since Aug 26, 2022)
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About: Most bonds can be offered by the preliminary bondholder to other financiers after they have actually been provided. To put it simply, a bond financier does not need to hold a bond all the way through to its maturity date. It is likewise common for bonds to be repurchased by the debtor if rate of interest decrease, or if the borrower's credit has actually enhanced, 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 financier buys the exact same bond later when it is trading at a discount rate for $980. When the bond matures, both financiers will receive the $1,000 face value of the bond. is the rate of interest the bond company will pay on the face value of the bond, revealed as a portion.

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If you don’t ask, the answer is always NO!
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