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Figure: Supply and Demand with Subsidy
-(Figure: Supply and Demand with Subsidy) Refer to the figure. The quantity traded with a $2 subsidy is:
Par Value
The stated value of a bond, stock share, or coupon as declared by the issuer.
Annual Coupon
The interest payment distributed each year to holders of bonds, generally represented as a percentage of the bond's principal amount.
Maturity
The date on which the principal amount of a note, draft, acceptance bond, or another debt instrument becomes due and is repaid to the investor.
Market Interest Rate
The prevailing rate of interest that is available in the market for savings, loans, and investments.
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