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Sagot :
Market rates help determine the selling price of bonds. premium, discount and par should be matched together.
What is bonds?
Bonds are high-security debt instruments that allow an organisation to generate cash and meet financial needs. It's a type of debt that debtors obtain from private investors for a certain period of time.
Organizations offer bonds for investors in main markets, including corporations, governments, municipalities, and other entities. Both businesses and governments use the corpus so obtained to finance operational and infrastructure growth.
Bonds are purchased by investors for their face value or principle, which is repaid after a certain period of time. A portion of the principal is extended by issuers as periodic interest with either fixed or adjustable rates.
To learn more about bonds
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