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A bondholder has six bonds. When she sells a bond, the expected price (in millions of dollars) for each one is given in table. For
A bondholder has six bonds. When she sells a bond, the expected price (in millions of dollars) for each one is given in table. For instance, if bond 1 is sold in year 1, she receives $15 million, but if it is sold in year 2, she receives $20 million. For business requirements, she must sell at least $20 million of bonds during year 1, at least $30 million worth during year 2, and at least $35 million worth during year 3. Set up an IP that she can use to determine how to maximize total revenue from bonds sold during the next three years.
Sold in | |||
Bond | year 1 | year 2 | year 3 |
1 | 15 | 20 | 24 |
2 | 16 | 18 | 21 |
3 | 22 | 30 | 36 |
4 | 10 | 20 | 30 |
5 | 17 | 19 | 22 |
6 | 19 | 25 | 29 |
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