-Refer to the Graph Above to Answer This Question

question 7

Multiple Choice

-Refer to the graph above to answer this question.The graph shows a tennis coach charges $20 per hour for tennis lessons for adults and $10 per hour for tennis lessons for children.The tennis coach is practicing:

• A)Peak load pricing
• B)Three part pricing
• C)Price discrimination
• D)Bundling
• E)All of the choices are correct.

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined price.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can lend in the money market, influenced by the central bank policies, supply and demand.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Convertible

A term often used in finance to describe securities, like bonds or preferred stocks, that can be converted into a predetermined number of another type, usually common stock, at the holder's option.