Calculate the requested measures in parts (a) through (d) for bonds A and B (assume that each bond pays interest semiannually): (9 points) A B Coupon rate 7% 7.5% Yield to maturity 7% 6.5% Maturity (years) 4 8 Par $1,000.00 $1,000.00 Price $1,000.00 $1,061.62 (a) Price value of a basis point (2 points) (b) Macaulay duration (6 points) (c) Modified duration

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?