Figure 8-3
The vertical distance between points A and C represents a tax in the market. 
-Refer to Figure 8-3.The per-unit burden of the tax on sellers is
Definitions:
Annual Coupon
The annual coupon is the interest payment that a bond issuer makes to bondholders each year, expressed as a percentage of the bond's face value.
Price
The amount of money required to purchase a good, service, or asset.
Maturity
The time at which a financial instrument becomes due for payment.
Liquidity Premium (LP)
Additional return demanded by investors for holding securities with lower liquidity, compensating for the potential cost and difficulties in trading.
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