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Ability—measures a borrower's capability to repay a loan employing a ratio to match their debt to revenue
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This type of loan isn't created besides in the form of bonds. Technically, bonds work in another way from much more standard loans in that borrowers make a predetermined payment at maturity.
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After a borrower problems a bond, its value will fluctuate depending on interest rates, market forces, and a number of other variables. Although this does not change the bond's benefit at maturity, a bond's market price tag can nevertheless fluctuate through its life span.
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