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(20 Pts) A client wishes to invest $1,500,000 in the following bonds: Company Return Maturity Rating Acme Chemical 11% 6 4 Fair Dynastar 9.50%
(20 Pts) A client wishes to invest $1,500,000 in the following bonds: Company Return Maturity Rating Acme Chemical 11% 6 4 Fair Dynastar 9.50% 10 3 Good Eagle Vision 8.65% 11 1 Excellent Micro Modeling 8.75% 10 1 Excellent OptiPro 9% 12.5 2 V. Good mmmm Sabre Systems 9.25% 8 3 Good Investment restrictions: a) At least 55% of the investment should be invested in long-term bonds (maturing in 10+ years). b) No more than 45% of the investment can be invested in Acme Chemical, Dynastar, and Micro Modelling. Formulate a Linear Programming Algebraic Model that will show how much should be invested in each bond to maximize total returns. You should clearly show 1) Decision Variables, 2) Objective Function, 3) Constraints.
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