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(Figure: Understanding Price Ceilings and Floors) in the Graph, a Price

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(Figure: Understanding Price Ceilings and Floors) In the graph, a price of $90 would allow for an effective price ceiling. (Figure: Understanding Price Ceilings and Floors) In the graph, a price of $90 would allow for an effective price ceiling.


Definitions:

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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