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Essay Details:
Essay text:
Many individuals believe that they should simply buy a bond and wait until
it matures before cashing it in. These people fail to realize that they may be losing a lot
of money due to the fluctuation of bond prices. At some point it may be more profitable
for them to sell their bond than to keep it until the payment date is reached.
There are many people who do not understand what bonds really are. A bond is an
agreement between two separate entities. One of these bodies gives, to the other, use of
their money for a period of time and, in return, may receive a "bond". The bond issuer
agrees to a fixed rate of return which he will pay the supporting person or business...
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