olmstead industry has 9.40% coupon bonds outstanding with a price of $1,023.58. interest is paid semiannually and the yield to maturity is 8.80%. the par is $1,000. how many years is it until these bonds mature?

Answers

Answer 1

4.752 years (approximately 4.8 years) The bond would maturity in 4.752 years.

Applying the yield-to-maturity formula

YTM is equal to C + (fv - pv) /n (fv + pv) /2.

9.40% of the par value is the coupon rate C.

= (9.40/100)× 1000

= $94

Face value (par value) is equal to $1,000.

Price = Pv = $1,023.58

Yield to maturity is equal to 0.0880.

n = how many years before maturity?

Using the formula above;

0.0880= 94 + (1000-1023.58)/n ÷ (1000+1023.58)/2

0.0880= 94 + (-23.58)/n ÷ (2023.58)/2

0.0880= 70 + (-23.58)/n ÷ 1011.79

94 - (23.58)/n = 0.0880 × 1011.79

94 - (23.58)/n =89.03752

-23.58 / n =89.03752 - 94

-23.58 / n = -4.96248 ( Cross multiply)

-23.58 = -4.96248n

Add -4.96248 to both sides.

n = 4.752

The maturity period for the bond is 4.752 years (approximately 4.8years)

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Related Questions

tax rates for the wealthiest americans, particularly the super wealthy, have dropped dramatically over the past three and a half decades, regardless of whether republicans or democrats are in control in washington. what does this suggest?

Answers

The reduction in the taxes suggests that regardless of the party in power, wealthy Americans have often maintained their political influence.

Every dollar of wages received by an American is immediately subject to regular income tax rates. But when they make a dollar profit because the value of their stocks rises, that dollar is either taxed at a low preferred rate or not at all.

The wealthiest Americans will benefit greatly from this preferential treatment of investment gains because it is their main source of income. However, because the most popular estimates of tax rates utilize an inadequate measure of income, they do not accurately reflect the value of this tax benefit. For two main reasons, the wealthy consistently pay low income tax rates. First, a large portion of their income is taxed at favorable rates.

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suppose your investment budget is $100,000. in addition, you borrow an additional $30,000 and invest the total available funds of $130,000 in stock a. if the expected rate of return of stock a is 13%, and you borrow at 6%, what is your expected portfolio return?

Answers

The expected portfolio return when the investment budget is $100,000. in addition to an additional $30,000 borrowed is 15.1%.

How to calculate the portfolio return?

Based on the information, the expected portfolio return will be:

= (Amount invested in stock A / investment budget) × return on stock A - (Amount borrowed / investment budget ) × borrowing rate

= (130000 / 100000) × 13% - (30000 / 100000) × 6%

= (1.3 × 0.13) - (0.3 × 0.06)

= 16.9% - 1.8%

= 15.1%

In conclusion, the expected portfolio return is 15.1%.

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which of the following are disadvantages to extending credit to customers? (check all that apply.) multiple select question. increased sales increased bad debt costs increased wage costs delayed receipts of cash increased credit ratings

Answers

The following are disadvantages to extending credit to customers delayed receipts of cash.

The dangers of promoting on credit score include extended salary charges incurred in hiring employees to reveal and tune credit score customers, awful debt charges from debts which can be amassed overdue or now no longer at all, and not on time receipt of coins.

As the above information show, there may be a positive degree of chance that you may not receives a commission on time in case you enlarge credit score. This can motive hassle with coins float and prevent your capacity to satisfy the groups monetary obligations.

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Answer:

increased

Explanation:

an economy is experiencing a high rate of inflation. the government wants to reduce consumption by $36 billion to reduce inflationary pressure. if the multiplier is 2, by how much should the government cut spending to achieve its objective?

Answers

If  the government wants to decrease the output by $36 billion then they should cut the expenditure by $18 billion. (36/2) should the government cut spending to achieve its objective.

Inflationary pressure:

Inflationary pressures are the underpinning causes of affectation. These pressures are the reason that the product of goods increases to meet or exceed consumer demand or that prices boost due to lack of force. Inflationary pressures beget the frugality to acclimate as a result of force and demand.

Why is there inflationary pressure?

Inflation can do when prices rise due to increases in product costs, similar as raw accoutrements and stipend. A swell in demand for products and indulgences can beget inflation as consumers are willing to pay further for the product.

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you are considering buying some stock in continental grain. which of the following is an example of nondiversifiable risk?

Answers

The following is an example of non-diversifiable risk C. Risk resulting from a general decline in the stock market.

Berkshire Hathaway is the world's maximum pricey stock. one of the main reasons why the company's inventory is so luxurious is as it never went through an inventory split. The corporation's CEO, Warren Buffet, intentionally decided towards a cut-up to save you short-time period buying and selling which might result in higher volatility.

Traders should not allow the bears to scare them out of taking benefit of selloffs, but they also shouldn't chase profits when there may be loads of marketplace power. ultimately, 2022 may be a good enough yr for the marketplace return standard, just no longer as robust as what we've got visible in the last few years.

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over armoir, inc. purchased a patent totaling $1,000 for cash during the year and equipment for $10,000 cash. assuming these are the only transactions affecting the investing activities, it will report net cash flows from investing activities of . multiple choice question. $11,000 $(11,000) $(9,000) $9,000

Answers

The net cash flows from investing activities for Over Armoir Inc, can be found to be $ (11, 000).

How to find the cash flow from investing activities?

Cash flows from investing activities include all cash transactions that had to do with the purchase or sale of fixed assets.

The cash transactions for fixed assets include the purchase of a patent and the equipment.

Net cash from investing activities is:

= ( -1, 000 ) + ( -10 , 000)

= $ - 11, 000

The reason the cash flow is negative is that the company was spending, not receiving.

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evergreen roofing had cash sales for the month totaling $42,000. evergreen offers a 1-year warranty on its roofing services. if evergreen estimates warranty claims will equal 3% of sales, the journal entry to record the estimated warranty expense for the month is:

Answers

If evergreen estimates warranty claims will equal 3% of sales, the estimated warranty expense for the month is debit warranty expense $1,260; credit Cash $1,260.

A warranty is a guarantee that is not a requirement of the contract or an indefinite term; it is a clause that only provides rights to the innocent party and does not affect the fundamental terms of the agreement.

The written assurance of quality as promised to a customer by a product manufacturer or service provider is known as a warranty. For the duration of the warranty's term, warranties offer customers legally guaranteed service replacement or problem-solving measures, subject to the warranty's terms and conditions.

Any plant that keeps its leaves all year long and into the following growing season is considered to be evergreen. Many broad-leaved flowering plant species from the tropics are evergreen, but in cold-temperate and arctic regions, the evergreens are typically cone-bearing shrubs or trees (conifers), like pines and firs.

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RIDDLE GETTER=100 POINT AND BRAINLIEST
1. Where does today come before yesterday?
2. What goes up and down but doesn’t move?
3. What has hands, but can’t clap?
4. What building has the most stories?
5. What has a head and a tail but no body?
ANSWER THESE 5 QUESTION TO GET RATE 5

Answers

Answer:

1. A dictionary

2. Stairs

3.  A Clock

4. Burj Khalifa

4. A Coin

Explanation:

Answer:

1. The dictionary

2. Stairs

3. A clock

4. The library

5. A coin

Explanation:

Alphabetically T comes before Y

You can go up and down stairs but it doesn't move unless it's an escalator XD

They call the clock parts hands but they don't clap

A library is full of books

The front and back of a coin are called heads and tails

a 20 year mortgage set up for uniform monthly payments with 6 percent interest compounded monthly is taken over by a new owner after 8 years. at that time $12,000 is still owed on the principal. what was the amount of the original loan?

Answers

The Original loan for the following amount will be Original loan = $16,344.91

The worked solution is :

No of monthly payments remaining at the end of 8 years = 12* 12 = 144

Monthly rate= 6%/12 = 0.5% = 0.005

Loan balance at the end of year 8 = Present value of remaining 144 monthly payments

Present value of annuity = Annuity amount {1-(1+r)^-n}/r

* [tex]{1-(1+r)^-n}/r[/tex]

$12,000 = Monthly payment * (1-1.005-144)/0.005

$12,000 = Monthly payment * 102.47474

Monthly payments = $12,000/102.47474

Monthly payments = $117.10

Original loan = Present value of 240(20 years *12) monthly payments

Original loan = $117.10*(1-1.005^-240)/0.005

Original loan = $16,344.91

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the price of fertilizer has increased. how will this affect soybean production? a change in input prices b change in technology c number of buyers in the market d change in the price of a related (substitute) good

Answers

Increased prices of fertilizers would bring a change in the price of a related (substitute) good.

The use of too much fertilizers in the crop increases the crop yields but decreases it's quality and thus the crops are available at a cheaper rate. On the contrary, when the fertilizers has increased, there would be lesser application of fertilizers with a good crop yield but an increased price of the related good too.

It is not profitable to utilise a pound of fertiliser when the price is higher than the anticipated increase in revenue from applying it to the field. Producers will be encouraged to use less fertiliser per acre because fertiliser prices have risen more than most crop prices.

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on january 1, year 1, mega corporation issues $100,000 of 8% bonds maturing in 10 years, when the market rate of interest is 9%. market interest rates drop to 6% by december 31, year 2. the company retires the bonds on december 31, year 2 by paying $112,561. the carrying value of the bonds as of this date is $94,383. retirement of the bonds results in a:

Answers

The retirement of the bonds will result in the loss of the company.

The market rate at the time of issue = 9%, while the coupon rate = 8%, it says bonds provide a lesser return when compared to the market rate.

At end of the year, the 2 market rate drops to 6% which is lower than the Bond's coupon rate. This means the bond provides a high return when compared to the market. So, companies to retire the bonds need to pay more than the par value. As the company should retire these bonds more than par value, the company incurs a loss. Hence Option 'B is correct which is the company incurs a loss.

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a manufacturing company accumulates the following data on variable overhead: actual cost incurred: $61,000; budgeted variable overhead at hours used: $64,000; applied variable overhead: $60,000. the variable overhead efficiency variance is:

Answers

A manufacturing company accumulates the following data. The variable overhead efficiency variance is 4000 U.

Calculating the problem:

applied variable overhead = $ 60,000

variable overhead variance = $ 64,000

the variable overhead efficiency variance = $ 64,000 - $ 60,000

                                                                    = $ 4000

What Is effectiveness Variance?

Effectiveness variance is the difference between the theoretical quantum of inputs needed to produce a unit of affair and the factual number of inputs used to produce the unit of affair. The anticipated inputs to produce the unit of affair are grounded on models or once gests .

What's overhead effectiveness variance?

Variable outflow effectiveness variance refers to the difference between the true time it takes to manufacture a product and the time calculated for it, as well as the impact of that difference. It arises from friction in productive effectiveness.

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the critical path on a project can change as the project progresses. group of answer choices true false

Answers

The critical path of a project can change as the project progresses is true. Thus the correct option is true.

What is the critical path of a project?

In project management, a critical route is a series of steps that would need the least amount of time to complete a project.

The critical route is a series of related tasks that have a direct impact on the project's completion deadline. If any key route work is late, the entire project is late. The critical route is a set of activities that governs the project's calculated start or conclusion date.

The CPM would describe the most time-consuming sequence. For example, if you're building a house, you'd have the following job sequences: Each work needs a unique amount of time and resources. Building walls and laying the roof takes longer than installing faucets and fixtures.

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1. What is Ford's stock symbol?​

Answers

PRB  is the symbol for Ford preferred stock.

What is a stock symbol?

A stock symbol is a combination of letters or other symbols that is used to identify publicly traded securities on an exchange. When a corporation issues securities to the public market, it selects an available symbol for its shares; this symbol is frequently associated with the company name. There are many public corporations that trade on a global scale, and even more, tradable tickers are available to represent various kinds of shares.

In August 2021, there will be 7,754, 4,448, and 2,014 traded names on the NYSE, Nasdaq, and Shanghai Stock Exchange, the three largest stock exchanges by market capitalization. The stock markets utilize "Ticker Symbols," which are distinctive one- to five-letter codes, to uniquely identify companies. Historically, stock quotes were written on tickers, hence the name "ticker symbol."

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futbol corporation (located entirely within state a) has federal taxable income of $100,000. this includes a state tax deduction for state a of $10,000. futbol also earned tax-exempt interest (both federal and state a) of $1,000. depreciation calculated under federal rules was $20,000. depreciation calculated under state a rules was $15,000. calculate state a taxable income.

Answers

$100,000 plus $10,000 (state taxes really aren't recoverable for state purposes) plus $0 in interest on muni bonds plus $5,000 (federal depreciation is $5,000 higher than state A depreciation) equals $115,000.

What do you mean by interest?

Your passions are the things that you find enjoyable to accomplish and the things that you enjoy learning about. When something is interesting, it keeps your interest and piques your curiosity: There wasn't much interesting conversation.

What are my main interests?

What Is the Interest Area? Your resume should include a section called "area of interest" that discusses your interests and extracurricular activities, such as baseball, writing, traveling, and photography.

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Otto mistakenly pays property taxes that should have been assessed against Pip. Otto can recover the amount from Pip in quantum meruit

Only if Pip consents

Even if Pip was not aware of the error

Only if Pip tried to conceal the error

Only if Pip was aware of the error

Answers

Otto pays Pip's property taxes, which he ought to have been responsible for. In quantum meruit, Otto can get the money back from Pip even if Pip was unaware of the mistake.

You must supply at least one requirement to install; see pip help install. How do you fix this?

You must specify at least one installation prerequisite (see "pip help install") Version 9.0. 3 of pip is available; however, you are currently using version 9.0. The command "python -m pip install —upgrade pip" should be used to upgrade.

How can you fix the pip is not recognized issue?

When you improperly install the package installer for Python (pip), which is required to execute Python on your computer, an error stating "pip: command not found" appears.  You can either install pip on your command line or reinstall Python, making sure to click the box to add Python to your PATH.

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lou sends a letter to his niece mary saying that he will give her $5,000 if she does not smoke before she is 25. mary complies, but lou refuses to pay her the money. lou says there was no consideration for his promise. if mary were to sue for breach of contract, how would the court rule? question 22 options: 1) there was no contract, because lou just promised to make a gift. 2) there was a contract, because the promise not to smoke was consideration. 3) there was no contract, because not smoking is not a detriment. 4) there was no contract because there was not a sufficient writing.

Answers

The court rule would be that there was a contract, because the promise not to smoke was consideration.

Any violation of the specified terms and conditions of a legally binding contract is regarded as a breach of that contract. Any number of infractions, from late payments to more serious transgressions like the failure to deliver a promised asset, can constitute a breach.

A contract is legally binding and will stand up in court. The victim would typically receive what they were promised if it could be demonstrated that a contract was broken. Punitive damages are infrequently granted for failure to fulfill contractual obligations, and contract breaches are not regarded as crimes or even torts.

When one party disobeys the terms of a contract between two or more parties, that party commits a breach of contract. This includes instances where a contractual obligation is breached entirely, such as when a tenant vacates their apartment without paying six months' worth of back rent, or when it is not fulfilled at all.

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the principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to which of the coso's internal control model's component? group of answer choices control environment. risk assessment. control activities. information and communication.

Answers

The principle of holding individuals accountable for their internal control responsibilities in pursuit of objectives belongs to control environment.of the Coso's internal control model's component.

One of the most popular frameworks for designing, implementing, maintaining, and evaluating internal controls is this one. An organisation must achieve the three internal control objectives, show that the five internal control components are in place and functioning, and put the 17 internal control principles described in the framework into practise in order to successfully complete a SOC 1 audit.

The acronym C.R.I.M.E. is frequently used to refer to the five COSO components, which are

control environment, risk assessment, information and communication, monitoring activities, and existing control activities.

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Lindsay has decided that it is important to her lifestyle goals to have paid
sick days, vacation, and personal time. She wants to be able to obtain a
career in order to be more likely to get benefits from her employer which
would give her these things.
Most likely, Lindsay should consider doing the following to obtain a career
and benefits?
A: Enter the workforce immediately after high school
B: Go to a community college and obtain an associate's degree
C: Go to a private or public university and obtain a bachelor's degree or
higher
D: It doesn't matter her choice. All job options provide benefits such as
these.

Answers

For Lindsay's career and benefits, she must go to private or public university and obtain a bachelor's degree or higher.

Career

Career refers the occupation undertaken for a significant period of a person's life and with opportunities for progress.

Given,

Lindsay has decided that it is important to her lifestyle goals to have paid sick days, vacation, and personal time. She wants to be able to obtain a career in order to be more likely to get benefits from her employer which would give her these things.

Here we need to find the best suitable option for Lindsay's career and benefits.

While we consider the given situation, we know that,

She needs the following benefits:

The concern will pay for the following things

1) Sick days

2) vacation

3) Personal time.

All these things are given even for the high school graduate. But if she need full credit of these thing for the long time then she have to go to a private or public university and obtain a bachelor's degree or higher.

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mary and bill enter into an agreement in which mary agrees to sell to bill her used television set for the sum of

Answers

Mary and bill enter into an agreement in which mary agrees to sell to bill her used television set for the sum enforceable because the court will not interfere with the party's determination of the price.

A gentlemen's agreement, or gentleman's settlement, is a casual and legally non-binding settlement among or greater events. It is typically oral, however, it can be written or really understood as a part of an unstated settlement through a conference or thru mutually-beneficial etiquette.

The essence of a gentlemen's settlement is that it is based upon the honor of the events for its fulfillment, instead of being in any manner enforceable. It is wonderful for a criminal settlement or contract.

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which type of professional investor will have a long investment horizon, have little in liquidity needs, and varying investment objectives based on expected liabilities?

Answers

Some investors are extremely risk averse

and prefer safer investments. That higher

reward does not prevent them from taking on the additional risk.

Investment is the commitment of funds to the purchase of an asset with the goal of increasing its value over time. Investment necessitates the sacrifice of some current item, such as time, money, or effort. In finance, the goal of investing is to earn a return on the invested asset. The return may consist of a gain (profit) or loss realized through the sale of a property or investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a combination of capital gain and income.Investors often expect bigger profits from riskier assets. When a low-risk investment is made, the return is often poor. Similarly, high risk entails a significant possibility of loss.

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a(n) blank allows an individual or company to share posts with an audience; however, they are designed to be used with mobile devices and limit the size of posts.

Answers

A microblog enables a person or business to publish postings with an audience; however, they are limited in size and meant to be utilized on mobile devices.

Writing brief blog posts with a specific, time-sensitive audience is known as microblogging. These brief blogs can contain a variety of content types and are distributed via social media platforms.

Microblogging combines immediate messaging with content creation. By using a microblog to share quick comments, you can increase interaction with an online audience.

You might not be able to incorporate all the material because microblogging focuses on creating brief content for readers. Writing on a specific topic in only 140 characters is a difficult undertaking.

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Many cell phone users are reluctant to change platforms because they do not want to learn a new system. Marketers could overcome this resistance with_______.

Answers

Many cell phone users are reluctant to change platforms because they do not want to learn a new system. Marketers could overcome this resistance with education and communication.

Why many cell phone users are reluctant to change platforms?
People loves to stay in their comfort zone, so it is hard to move onto new things especially when they have no clue about what will happen. There is a fear of change that makes them reluctant into new things and also there will be a possible risk of trying something new.

How marketers can tackle this reluctant issue?
Educating and communicating them about the new features and systems that will help to overcome their reluctance. Marketers also able to explain about what is the benefit of the new feature that will make their lives easier than before.

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at the time of maturity, an investor realizes that the overall return on the investment was actually greater than the coupon rate stated on the bond when purchased. this most likely would have occurred because the bond had initially been purchased

Answers

at the time of maturity, an investor realizes that the overall return on the investment was actually greater than the coupon rate stated on the bond when purchased. this most likely would have occurred because the bond had initially been purchased at a discount

(Bonds are bought back at par. A bond's overall return, which is larger than the coupon rate, will increase when it is purchased at a discount (less than what will be earned when the bond matures).

What is a Bond?

Bonds are a type of debt instrument that stand in for loans given to the issuer. Bonds are a frequent tool used by enterprises and governments (at all levels) to borrow money. Roads, schools, dams, and other infrastructure must be funded by the government. The sudden cost of conflict might also necessitate the necessity for fundraising.

Similar to individuals, businesses frequently borrow money to expand, to purchase real estate and equipment, to carry out profitable initiatives, for R&D, or to hire personnel. Large organizations frequently require far more funding than the ordinary bank can offer, which is a concern.

By enabling numerous individual investors to take over the function of the lender, bonds offer a solution. In fact, public debt markets enable countless investors to lend a share of the required money. Furthermore, markets enable lenders to sell their bonds to other investors or to purchase bonds from other people long after the initial issuing entity has raised funds.

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what are two ways that performance planner can help reveal the possibilities across all your ads campaigns? (choose two.)

Answers

The two ways a performance planner can help are validation and simulation.

The Performance Planner is a system supporting the planning of search campaigns and can assist in maximising the firm's ad budget for growth. To make predictions, it combines machine learning with account history. Projections must be accurate to a certain degree with Ads tools. One can view campaign projections, investigate results, comprehend opportunities, decide on budgets, and boost ROI.

There are two ways a performance planner can help, these are validation and simulation. The forecast mechanism replicates specific advertisement auctions employing query level factors such as seasonality, clickthrough rate, rivals, landing page, and time. In contrast, validation is the process through which software evaluates the accuracy of thousands of campaign samples over the course of 1, 7, 30, or 90 days by doing backwards and forward measures of accuracy.

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what are the core processes of business identified by bossidy and charan? (choose every correct answer.)

Answers

Understanding the backgrounds of the two authors can help you better understand this management technique. Larry Bossidy has successfully led a number of businesses to great success. He changed the business while serving as CEO of Allied Signal, earning him the 1998 CEO of the Year award.

Additionally, he was the COO and the Chairman and Former CEO of Honeywell International. Ram Charan serves as a board of director and senior executive advisor. He has done business with firms like GE, Bank of America. Based on the authors' experience, there is positive news for leaders in execution.

The capacity to make a strategy and follow it to achieve great things is a skill that can be learnt, just like any other discipline. But it necessitates a little different mentality than what most leaders are used to.

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O Search result Should a petrol station owner be allowed to charge Rupees 500 a litter, if his store is the only store with petrol​

Answers

If the store is the only store with petrol, the petrol owner should not do this as this is dishonest business practice. Thus the correct option is C.

What is the importance of ethics in business?

As defining appropriate behavior outside the scope of governmental regulation, business practices strengthen the law. People follow ethical principles when they tell the truth, maintain their commitment, or assist a stranger as  It controls people's conduct.

In the given case, it is asked that a petrol station owner be allowed to charge Rupees 500 a litter if his store is the only store with petrol​ is against the business ethics as having a single owner should exploit the consumers according to the business ethics principles.

Therefore, option C is appropriate.

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The complete question is Probably

A.

Yes, if the person is not a regular customer

B.

Yes, this is honest business practice.

C.

No, this is dishonest business practices

D.

It depends on how long he has been in business.

brickhouse construction has a sales meeting to discuss approaches for growth in a downward economy. as a team, they agree on a solution. robert, one of the team members, continues to argue his point anyway. this is an example of which conflict management style?

Answers

Since as a team, they agreed on a solution, and Robert, one of the team members, continues to argue his point anyway, this is an example of this conflict management style: competing.

What is a conflict?

A conflict can be defined as any form of misunderstanding, disagreement, or struggle that arises between two (2) or more parties such as the members of a team, employees, etc., especially due to any of the following reasons;

A difficult challenge.An opposing view.Differing opinions.An incompatibility.Superiority

In this context, we can reasonably infer and logically deduce that competing in a business organization typically involves a member of a team such as Robert disagreeing with a unanimous decision that was reached by others.

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if the rate on one-year treasury strips currently is 6 percent, what is the repayment probability for each of the following two securities? assume that if the loan is defaulted, no payments are expected. what is the market-determined risk premium for the corresponding probability of default for each security? one-year aa-rated zero-coupon bond yielding 9.5 percent. one-year bb-rated zero-coupon bond yielding 13.5 percent.

Answers

A risk premium is the amount of additional return needed by an individual to make up for being exposed to a higher risk level. It is frequently used in finance and economics, with the predicted hazardous return less the risk-free return serving as its generic definition.

The difference between the return on an investment and the return on a risk-free investment is the risk premium.

Risk premium calculated by the market equals 06315*6.9+0.3685*9.5, or 7.8581; likelihood of security equals 6/9.5, or 0.6315 = 0.3685

The average market return less the risk-free rate equals the market risk premium. The term "market" for shares can refer to an index of all stocks. Simply put, an investor needs a higher return on their investment to make it worthwhile the more risky the investment is.

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southwest airlines sends an email to frequent-flier customers offering a special low price between selected cities if the plane ticket is purchased within the next four days. this is an example of

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The type of promotion used by Southwest Airlines to send emails to  frequent-flier customers on low prices, is an example of Direct marketing.

What is direct marketing?

Direct marketing, as the term implies, is a method of communication and promotion where a company communicates directly with the customers or potential customers about products that are on offer.

The action by Southwest Airlines is an example of direct marketing because Southwest Airlines communicated directly with its  frequent-flier customers via their emails.

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