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An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise.Holding everything else constant, how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles) ?
Zero-Coupon Bonds
Bonds that do not pay periodic interest payments. Instead, they are issued at a discount to their face value, and their profit comes from the difference between the purchase price and the face value paid at maturity.
Yield to Maturity
The total return anticipated on a bond if it is held until it matures, encompassing both interest payments and the appreciation or depreciation of the original investment.
Face Value
The face value or amount in dollars indicated on a financial security, such as a bond or note, which is the total that will be paid out when it matures.
Yield to Maturity
The expected overall yield of a bond, assuming it is retained until its maturity date, comprising of both interest earnings and profits from capital appreciation.
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