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.