The Pricing Strategy That Is Almost the Exact Opposite of Skimming

question 287

Multiple Choice

The pricing strategy that is almost the exact opposite of skimming pricing is

• A) target pricing.
• B) penetration pricing.
• C) price lining.
• D) odd-even pricing.
• E) prestige pricing.

---

Definitions:

Coupon Rate

The annual interest rate paid by a bond's issuer to its holders, expressed as a percentage of the bond's face value.

Bond Market

A financial market where participants can issue new debt in the form of bonds or buy and sell debt securities, primarily to and from investors.

Coupon

The yearly rate of interest on a bond, denoted as a percentage of the base value.

Original Maturity

The initial term agreed upon at the issuance of a loan or bond, prior to any refinancing or alteration.