Which of the Following Is the Most Effective Emotional Appeal

question 24

Multiple Choice

Which of the following is the most effective emotional appeal?

• A)For a limited time you will receive our employee discount on any new General Motors vehicle.
• B)Surround yourself in the uncompromising safety and luxury of a Lincoln because you've earned it.
• C)Purchase a Jeep today, and you will receive a $1,500 college savings bond for tomorrow.
• D)Save now and save later. With its low sticker price and great gas mileage, this Focus hybrid is a best buy.

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Definitions:

Yield to Call

The return an investor would receive if a callable bond is held until the issuer exercises their option to redeem it before its maturity date.

Current Yield

The annual interest payment of a bond divided by its current market price, used to compare the return on investment of different bonds.

Coupon Bond

A debt security that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal is repaid.

Basis Point

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.