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If a union establishes by collective bargaining a wage rate that is above a competitive market equilibrium wage rate, then
Bond Price
The market value of a bond, which fluctuates based on interest rates, the bond's credit quality, and other factors.
Par Value Bond
A par value bond is a bond that is issued at its face value, and the amount that is paid back to the bondholder at maturity.
Coupon Rate
The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.
Modified Duration
A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, adjusted for the bond's yield.
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