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A monopolistically competitive firm influences market price by virtue of its size.
Zero-coupon Bond
A bond that does not pay periodic interest and is sold at a discount to its face value, with the full face value repaid at maturity.
Par Value
The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.
Forward Interest Rate
Rate of interest for a future period that would equate the total return of a long-term bond with that of a strategy of rolling over shorter-term bonds.
Yield Curve
A graph that plots the interest rates at a set point in time of bonds having equal credit quality but differing maturity dates, typically used to predict economic changes.
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