ABC Co. established an early retirement program as part of corporate restructuring and leads to company incurring following obligation over next 5 years. Assume the time is now January 1, 2018. Cash requirements are due on Jan. 1 of each year. Company can invest in savings account or various types of bonds. Some bonds are available to be purchased today while others are only available at a later date. Rates shown are based on par value of bond. Any funds not placed in bonds will be put in savings account, earn 2% interest. Formulate an LP model to help ABC meet its requirements with minimal initial funds to invest. Solve the model using LINGO. How much money is spent on buying each type of bond and what is the amount of money put into savings account each year? Attached LINGO code and output. (10 + 1 + 1 = 12 marks)

January 1 of Year	2018	2019	2020	2021	2022
cash required ($1000)	290	315	340	385	315

Bond	price	rate (%)	year to maturity	Par value	Available in
1	$2350	3.80	3	2000	Jan 1. 2018
2	2200	4.50	2	2000	Jan 1. 2018
3	1000	6.75	2	1000	Jan. 1 2019
4	1000	5.5	1	1000	Jan 1. 2020