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Perfect Face Cream ran a commercial to showcase its new Wrinkle-Free Face Cream. The commercial showed an older woman with severe wrinkles followed by images of that same woman after applying the cream for one month. The woman's face was completely smooth. She stated "I used this twice a day for a month, worked out, ate right, and lived my life. I didn't change any of the planned activities I had scheduled for that month" and look at my results! The women said this cream was the "best she had seen" and was "amazing" and had given her "fantastic results".
It turns out that the woman had used the cream in conjunction with plastic surgery. Many customers complained that the product did not work as advertised. They claimed that the commercial was deceptive. Perfect Face Cream disagreed, citing that the commercial was just a visual representation of what could happen if the cream was used in an effort to eliminate facial wrinkles. The customers complained to the Federal Trade Commission. Can the FTC prohibit the use of this commercial? Discuss why or why not.
What is the yield to maturity of a bond that pays an 3% coupon rate, matures in 15 years, and is currently selling for $850? a.) 8.75% b.) 4.37% c.) 4.39% d.) 17.50%
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