The competitive strategy model formulated by porter states that firms respond to the analysis of their industry by selecting one of competitive strategies.

The competitive strategy model formulated by porter states that firms respond to the analysis of their industry by selecting one of four competitive strategies. According to Professor Michael Porter, the four competitive cost leadership, differentiation, low cost focus and differentiation focus. The strategy which is the cost leadership is typically only employed by large companies that can obtain products cheaply through economies of scale. Companies that use the differentiation strategy offer unique products or services is called differentiation. The low cost leadership is the process or the way which describes the competitive advantage of the company. Lastly, A focused differentiation strategy defines targeting a small group of customers with differentiated products.

Bond Price = $1782.784041 rounded off to $1782.78

Option b is the correct answer

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 2000 * 0.059  = $118

Total periods (n) = 15  

r or YTM = 0.071

The formula to calculate the price of the bonds today is attached.

Bond Price = 118 * [( 1 - (1+0.071)^-15) / 0.071]  + 2000 / (1+0.071)^15

Bond Price = $1782.784041 rounded off to $1782.78