Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and
who expect to be noticed. Such a profile would be based on which type of segmentation? A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender
Psychographic segmentation is one of the useful types of market segmentation used in categorizing a market target to be reached, of which such categorization into subgroups is based on traits such as the values, status, attitudes, interest, beliefs, motivations or interests of the target market. The target market is categorized into groups in this regard, with each group or segment having one or more of the listed traits in common. The label given by Porsche AG to a segment of its customers he described as “Top Guns”, obviously indicates it profiled his customers based on psychographic traits.
This type of segmentation specializes in the study of the consumer's psychological traits and other aspects inherent in his life, which can be likes, lifestyle, interests, desires, etc. Under this segmentation, it is possible to get much closer to the ideal consumer, although it takes a lot of effort to implement it.
The question is calculate the current price of the bond?
The answer is: Current price of the bond is $1,094.27.
Explanation:
We have:
* The current required rate of return = Real rate of return + Inflation premium + Risk premium = 3% + 4% + 3% = 10%
* Bond's coupon = Face value x interest rate = 1,000 x 11% = $110
=> Current price of the bond is the present value of its future cash flows including 30 coupon payment annually and one principal repayment at the end of 30-year time, discounted at 10%; which is calculated as:
The maximum price we should be willing to pay for this IBM bond is $ 877.
Explanation:
The price of bond can be determine by discounting all future cashlows we will get from bond in form of interest payment or redemption amount using expected rate of return.
