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How To Lower Bond Costs

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If you purchase a bond that is paying out interest rates higher than the markets interest rate a bond premium will be included in the purchase price. The market uses the bond premium to adjust the price of a bond that has too high of an interest rate.

Bond premiums can cause record keeping to be too complex. You can amortize the amount of the premium over the lifetime of the bond. This allows you to allocate the bond premium over time to show th...

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Susan Reynolds is a content coordinator for a leading South African bond originator. For more information visit: http://www.bondcredit.co.za/

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