Question
1.A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual
1.A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual return
Bond Annual Return Maturity Risk Tax-Free
A 9.50% Long High Yes
B 8.00% Short Low Yes
C 9.00% Long Low No
D 8.75% Long High Yes
E 9.10% Short High No
The officer wants to invest at least 40% of the money in short-term bonds and no more than 30% in high-risk bonds. At least 60% of the funds should go in tax-free investments. The officer's goal is to maximize annual return.
Write down the linear program.
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