There are three main things to know about any bond before buying it, they are;
Knowing these three items allows examining the bond and comparing it to other potential investments.
If organization holds a bond to maturity, it won’t lose its principal as long as the borrower doesn't default. If it buy and sell bonds before it mature, it can make or lose money on the bonds completely separate from the interest rates. How much more it is going to get depends on the exact maturity date of the bond, where interest rates have moved, and the transaction costs involved.
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