Five Years Ago, Shirley Harper Bought a 10-Year Bond That

question 76

Multiple Choice

Five years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $981.10. Today, she sold it for $1,067.22. What is the realized yield on her investment? (Round to the nearest percent.)

• A) 7%
• B) 8%
• C) 11%
• D) 10%

Distinguish between cost-oriented, demand-oriented, and competition-oriented pricing approaches.

Analyze the role of target return-on-investment (ROI) in setting prices.

Recognize the importance of customary pricing in certain markets.

Comprehend how businesses utilize pricing to achieve specific financial objectives.

---

Definitions:

Talcott Parsons

An American sociologist known for developing a general theoretical framework for the social sciences and for his theories concerning social action, the system, and functionalism.

Robert Merton

An American sociologist known for his theories of social structure, anomie, and for developing the concept of self-fulfilling prophecy.

Middle-range Theories

Theories that operate between the minor but necessary working hypotheses that evolve in abundance during day-to-day research and the all-inclusive systematic efforts to develop a unified theory that will explain all the observed phenomena.

Marxian Theories

A set of socio-economic ideas that analyze the effects of capitalism on labor, productivity, and economic development.