Setting the Price of a Line of Products at a Number

question 180

Multiple Choice

Setting the price of a line of products at a number of different specific price points is referred to as

• A) odd-even pricing.
• B) bundle pricing.
• C) cost-plus pricing.
• D) price lining.
• E) prestige pricing.

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Definitions:

Premium

A premium is the amount by which the price of a security or financial instrument exceeds its intrinsic or face value.

Indenture

A legal contract specifying the terms and conditions of a bond or loan, including interest rates, repayment schedule, and other obligations.

Bond Issuer

An entity, such as a corporation or government, that issues bonds to raise funds from investors.

Bondholder

An investor who owns bonds issued by corporations or governments, thereby lending money to the issuer in return for periodic interest payments and the return of principal at maturity.