The objects that fulfill the needs and wants of consumers are products.
Answer:
7.32%
Explanation:
<em>The price of a bond is the present of its interest payment and the present value of redemption value (RV</em>
Present value of the Redemption Value (RV) =
FV× (1+r/2)^(-2×n)
FV- 2000, r- yield rate, r/2= 6.74%/2 = 3.37%, n-22
=2000× (1.0337)^(-2×22)
= 465.233
Present Value of the coupon payment =Price of bond - PV of RV
= (106.657% × 2000) - 465.233
= $1667.90
PV of coupon payment= A × (1-(1+r)^(-2×n)
A- semiannual coupon payment, r -yield
1667.90 = A × (1-(1.0337)^(-2*22))/0.0337
1,667.90 = A × 22.7710
A = 1,667.90/22.7710
A= 73.246
Annual coupon payment = 2× 73.246= 146.493
Annual coupon rate = coupon payment/ face value
= (146.493/2,000 )× 100
= 7.32%
Answer:
Premium, value
Explanation:
Premium Pricing Strategy: this a strategy used by companies to drive up the prices for their products. This strategy is used when customers can be convinced that a company will offer a higher value than its competitors.
For example, looking at the prices of a Rolls Royce Phantom and a Toyota, one costs $450,000 and the other costs $25,000, both will take you from your office to your house, but some customers will prefer to buy the Rolls Royce, this is because of the value the Rolls Royce offers.
Value: this is the worth or usefulness of something. Therefore, if a company can offer value for money, customers will be willing to pay.
I believe the answer is: Term insurance
Term insurance is significantly cheaper compared to other type of insurance because it only cover risk plan without considering potential return in the future.
The amount of term insurance usually paid at a fixed rate on a limited period of time.
The effect that could be called to the given scenario above is the referral marketing. The referral marketing is a way of being able to promote products to customers, specifically new, with the use of referrals. It could be seen above as after Jack recommended it to Jill, Jill will now refer the product that she loves to another person that could be a potential new customer.
