Tom cruise lines inc. issued bonds five years ago at $1,000 per bond. these bonds had a 25-year life when issued and the annual interest payment was then 14 percent. this return was in line with the required returns by bondholders at that point as described below: real rate of return 4 % inflation premium 5 risk premium 5 total return 14 % assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. the bonds have 20 years remaining until maturity. compute the new price of the bond

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?