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What Are the Distinctive Features of a Broad Differentiation Strategy

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What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?


Definitions:

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity, also known as the "market interest rate."

Bonds

Financial instruments representing a loan made by an investor to a borrower, often corporate or governmental, that pays periodic interest and the principal at maturity.

Face Value

The amount the corporation must repay to the bondholder at the maturity date.

Interest

The cost of using money for a period of time.

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