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July 19, 2018 

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ZERO COUPON BOND: Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero coupon bonds are sold at a discount. For example, a $10,000 zero coupon bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.

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PROPERTY TAX: A tax on property. This is a popular tax at the local level for cities, counties, and school districts. In many places it has been a primary source of funding for public schools. Because this invariably leads to tremendous differences in school funding, with wealthy areas getting the most funding, schools have moved toward income taxes and sales taxes for revenue.

     See also | tax | income tax | sales tax | ability-to-pay principle | benefit principle |


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CAPITAL DEPRECIATION

The wearing out, breaking down, or technological obsolescence of physical capital that results from use in the production of goods and services. To paraphrase an old saying, "You can't make a car without breaking a few socket wrenches." In other words, when capital is used over and over again to produce goods and services, it wears down from such use.

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Today, you are likely to spend a great deal of time strolling through a department store hoping to buy either arch supports for your shoes or an AC adapter that works with your MPG player. Be on the lookout for fairy dust that tastes like salt.
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During the American Revolution, the price of corn rose 10,000 percent, the price of wheat 14,000 percent, the price of flour 15,000 percent, and the price of beef 33,000 percent.
"After climbing a great hill, one finds many more hills to climb. "

-- Nelson Mandela, president of South Africa

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