A company has liabilities of $500, $900, $2000, and $2300 due at the end of years 1, 2, 3, and 4 respectively. The only investments available are the following bonds, all redeemable at par: 1-year 7% annual coupon bond 2-year 6% annual coupon bond 3-year 5% annual coupon bond 4-year 8% annual coupon bond. How much should the company invest in the 1-year bond (i. e. the price) in order to exactly match the assets and liabilities given a yield rate of 3%.

Mr. beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the bb-1 set. (bb-1 stands for body beautiful number 1.) the carrying cost for bb-1 is $5 per set per year. to meet demand, mr. beautiful orders large quantities of bb-1 seven times a year. the stockout cost for bb-1 is estimated to be $50 per set. over the past several years, mr. beautiful has observed the following demand during the lead time for bb-1: demand during lead time probability40 0.150 0.260 0.270 0.280 0.290 0.1total 1.0the reorder point for bb-1 is 60 sets. what level of safety stock should be maintained for bb-1?