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Community: Investing Wiki

Term Of The Hour

bond redemption swap: Original post by Alexander Newman of Demand Media Investors swap out bonds by selling an existing bond, while at the same time using the proceeds of the sale to buy a different bond. This can be done for a variety of reasons, such as for tax purposes or for a change in investment strategy. A bond acts similar to a loan, because companies and governments that sell bonds to raise money for their…

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