Full price

Rookie police officers have to buy duty shoes at the full price of 84.50, but officers who have served at least a year get a 15% discount. Officers who have served at least three years get an additional 10% off the discounted price. How much does an officer who has served at least three years have to pay for shoes ... 

There is full price transparency for all rival products, on both sides of... 

Because of their size, large water treatment companies have the ability to handle the biggest water treatment contracts available anywhere in the world. They are also well placed to handle multisite national and multinational contracts. Large companies have, of course, more overhead to support, and therefore tend to be full priced, but can offer considerable depth because of their very size. 

Without adjustment mechanisms (e.g. exchange rates, import quotas), direct bilateral linking of cap-and-trade schemes leads to full price harmonization across the linked schemes. In a standard... 

The modified Cade handwashing procedure uses handwashing in five sterile polyethylene wash basins or large zip-lock freezer storage bags [1], Only samples from washes 1 and 5 are sampled and plated, saving time over the full Price or Cade technique. 

To whom should the deal be offered dealers or final customers Offering a price promotion to dealers or distributors in anticipation that the deal will be offered to final customers is not the same as offering it directly to final customers. Dealers may choose to reduce their prices in the full amount or less, or not at all. Further, they may buy excess amounts of the deal merchandise, relative to actual demand, and sell some units at full price after the deal period is over. 

In order to value a bond with the settlement date between coupon payments, we must answer three questions. First, how many days are there until the next coupon payment date From Chapter 1, we know the answer depends on the day count convention for the bond being valued. Second, how should we compute the present value of the cash flows received over the fractional period Third, how much must the buyer compensate the seller for the coupon earned over the fractional period This is accrued interest that we computed in Chapter 1. In the next two sections, we will answer these three questions in order to determine the full price and the clean price of a coupon bond. 

The sum of the present values of the cash flows is 101.8466. This price is referred to as the full price (or the dirty price). 

It is the full price the bond s buyer pays the seller at delivery. However, the very next cash flow received and included in the present value calculation was not earned by the bond s buyer. A portion of the next coupon payment is the accrued interest. From Chapter 1, we know that accrued interest is the portion of a bond s next coupon payment that the bond s seller is entitled to depending on the amount of time the bond was held by the seller. Recall, the buyer recovers the accrued interest when the next coupon payment is delivered. 

Once we know the full price and the accrued interest, we can determine the clean price. The clean price is the price that quoted in the market and represents the bond s value to the new bondholder. The clean price is computed as follows... 

Clean price = Full price - Accrued interest In our illustration, the clean price is... 

The most common measure of yield in the bond market is the yield to maturity. The yield to maturity is simply a bond s internal rate of return. Specifically, the yield to maturity is the interest rate that will make the present value of the bond s cash flows equal to its market price plus accrued interest (i.e., the full price). To find the yield to maturity, we must first determine the bond s expected future cash flows. Then we search by trial and error for the interest rate that will make the present value of the bond s cash flows equal to the market price plus accrued interest. 

To illustrate, consider once again the 5.25% coupon BMW Finance described in Exhibit 3.10. From the yield analysis screen in Exhibit 3.11, we can locate the bond s full price under the heading Payment Invoice on the right-hand side of the screen. The full price is 1,117,726.69 (labeled Total ) for a 1 million par value position. The cash flows of the bond are (1) annual payments of 5,250 for the next four years and (2) a payment of 1,000,000 at maturity. The interest rate that makes these cash flows equal to the full price is 2.793%. 

Bond 1 4% coupon Italian government bond maturing 1 March 2005 Full Price 104.1947 Yield 2.147%... 

Bond 2 5.75% coupon Italian government bond maturing 1 February 2033 Full Price 119.1198 Yield 4.727%... 

To illustrate the computation, let s examine a 4.2% coupon, lO-year Spanish government security that matures on July 30, 2013. Bloomberg s Yield Analysis Screen is presented in Exhibit 4.7. If the bond is priced to yield 3.724% on a settlement date of June 6, 2003, we can compute the PVBP by using the prices for either the yield at 3.734 or 3.714. The bond s initial full price at 3.724% is 104.5673. If the yield is decreased by 1 basis point to 3.714%, the PVBP is 0.085 (1104.5673 - 104.65221). Note that our PVBP calculation agrees with Bloomberg s calculation labeled PRICE VALUE OF A 0.01 that is presented in the Sensitivity Analysis box located in the lower left-hand corner of the screen. 

Given the initial full price of 104.5673, the euro price change estimated using duration is... 

To illustrate the calculation, consider the following three-bond portfolio in which all three bonds are Irish government securities. Exhibit 4.25 presents a brief description for each bond that includes the following full price per 100 of par value, its yield, the par amount owned, the market value and its duration assuming a settlement date of 6 June 2003. Since these securities are priced with a settlement date between coupon payments dates, the market prices reported are full prices. The... 

Bond Full Price ( ) Yield (%) Par Amount Owned ( ) Market Value ( ) Duration... 

The forecast of 100,000 units is accurate. 100,000 units are sold and the product result matches the plan. The supply chain and product managers are heroes. The result is shown in Table 6.3. Sales falter only 70,000 units are sold. The widget maker must dump 30,000 units of inventory in a bulk sale at a 50 percent discount. The product manager is reprimanded the supply chain manager is okay because distribution costs for full-priced units are within the 10 budget. The result is shown in Table 6.4. The cost of the inflexible supply chain, the market mediation cost, is 300,000. This is calculated as the 10 loss per unit for the 30,000 units sold at discount. 

Widget sales unit price (full-priced units) 100... 

Distribution cost for full priced units ( 10 each) 700,000... 

For example. Bodily and Weatherford (1995) present a generic multiple-class PARM allocation problem. They first study a simplified two-class problem without diversion. The problem assumes that there are two demand classes, full-price and discount, sharing a fixed available capacity of qo units, and that no full-price customers would pay less than their willingness to pay (i.e. the full price i o)- The purpose is to determine how many units (denoted by a decision variable qi) should be allocated to discount-price customers, paying discount price i i, before the number of full-price customers (denoted by a random number X) is realized. Through a newsboy-type marginal analysis, the authors derive the decision rule increase discount share from q to 1 if ... 

The authors further extend the problem to allow diversion in a multiple-class setting. Available resources are offered in N nested buckets of size q, Qu Q2, , and qjsf at full price Rq and discount prices Ri (for i = 1, 2,. .., N), respectively (assuming Rq > R > R2 >. .. > Rn)- Customers from... 

Acts 4 34-6 5 i-ii. The story actmtly has Peter reprimanding Ananias and his wife Sapphira as lying to God in not giving to the church the full price of the land they had sold and in keeping some aside for themselves. Both died as a consequence of hearing of God s displeasure. 

---