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(Figure: Understanding Price Ceilings and Floors) In the graph, a price of $90 would allow for an effective price ceiling.
Selling Today
The act of disposing of an asset or security in the current market with the intention of realizing its current value.
Par-value
The face value of a bond or stock, as stated by the issuing company, which is typically the amount paid out at maturity for bonds.
Yield To Maturity
The total return anticipated on a bond if the bond is held until it matures, taking into account both current income and capital gains or losses.
Zero-coupon Bonds
Debt securities that are issued at a discount to their face value and do not pay interest during their life but are redeemed at full face value at maturity.
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