Leslie Is Shopping for a New Computer the Day After

question 9

Multiple Choice

Leslie is shopping for a new computer the day after Thanksgiving.She is hoping to get a good deal.The local electronics store has advertised a leading brand of computer at a 60% discount.Leslie goes to the store to purchase that computer, but when she arrives, the salesperson tries to convince her to purchase a higher priced computer with more features.This tactic is commonly known as:

• A)foot-in-the-door technique
• B)authority principle
• C)bait-and-switch technique
• D)door-in-the-face technique
• E)scarcity principle

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Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.

Yield To Maturity

The total return anticipated on a bond if it is held until the date it matures, including both interest payments and the gain or loss realized on the principal amount.

Market Price

The current exchange rate for a service or asset in the open market.

Zero-Coupon Bonds

Bonds that do not pay periodic interest and are sold at a discount from their face value, with the full face value being repaid at maturity.