When Matt Sawyer talks about giving kids a good experience early so they are more likely to come back when they "get wheels" (me
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Answer:
The correct answer to the following question will be "8%".
Explanation:
The given values are:
Number of years of maturity = 5 years
Interest rate of coupon = 10%
= 10%×1000
= 100
Yield to maturity, YTM = 8%
As we know,
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ =
⇒ =
After 1 years, we get
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ =
⇒ =
Now,
The total return rate =
=
=
Answer:
a) $3
b) $2
c) 1449
Explanation:
Given:
The cost for a carton of milk = $3
Selling price for a carton of milk = $5
Salvage value = $0 [since When the milk expires, it is thrown out ]3
Mean of historical monthly demand = 1,500
Standard deviation = 200
Now,
a) cost of overstocking = Cost for a carton of milk - Salvage value
= $3 - $0
= $3
cost of under-stocking = Selling price - cost for a carton of milk
= $5 - $3
= $2
b) critical ratio =
or
critical ratio =
or
critical ratio = 0.4
c) optimal quantity of milk cartons = Mean + ( z × standard deviation )
here, z is the z-score for the critical ration of 0.4
we know
z-score(0.4) = -0.253
thus,
optimal quantity of milk cartons = 1,500 + ( -0.253 × 200 )
= 1500 - 50.6
= 1449.4 ≈ 1449 units