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(Figure: Rent Controls) Look at the figure Rent Controls.If rent controls are set at Rent1:
A.rental apartments may be of inefficiently low quality.
B.there will be an efficient allocation of rentals.
C.some landlords may break the law by renting below the mandated price.
D.new apartments will be constructed.
Coupon Rate
The yield paid by a fixed-income security; a fixed percentage of the par value of the bond, paid to the investor annually or semi-annually.
Par Value
The face value of a bond or stock as stated by the issuer, which may differ from its market value.
Discount Rate
The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the risk and time value of money.
Semiannual Interest
Interest that is calculated and paid twice a year.
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