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Identify Two Methods Used in Segmenting Markets and Give an Example

question 87

Essay

Identify two methods used in segmenting markets and give an example of a situation where each might be used.


Definitions:

Yield To Call

The total return anticipated on a bond if it is held until the date it is called by the issuer, including interest payments and the call price.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, as specified in the callable feature.

Par-value

The nominal or face value of a bond, share of stock, or other financial instrument, representing the value at which it will be redeemed at maturity.

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