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1. Target’s value-based advertising tends to take a humorous and unexpected approach to communicating its message to the reader. But Target also uses “hard-sell” ads in newspaper inserts. Why?

2. A zero coupon bond with a face value of $1,000 is issued with an initial price of $420.50. The bond matures in 11 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding. 10.36, 34.46, 20.72, 17.59, or 17.23.

Financial Management, Finance

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