Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me setup a easy excel speadsheet 19. A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the

image text in transcribed
help me setup a easy excel speadsheet
19. 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. Annual Bond Return Maturity Risk Tax-Free 9.5% Long High Yes B 8.0% Short Low Yes 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest at least 50% of the money in short-term issues and no more than 50% in high-risk issues. At least 30% of the funds should go into tax-free investments and at least 40% of the total annual return should be tax-free. Hint: the formula for the last condition/constraint is: .095A +0.08B +0.09D 20.4* (0.095A +0.08B +0.09C +0.09D +0.09E) In the body of you email answer the following and email back to cpaprofessor@aol.com by 10AM - attach your spreadsheet to the email. 1-What is the goal of this problem 2-how many decision variables are there? 3 what is the value of the objective function 3a Ignoring the constraints, the value of the objective function would have to be between and 4 how many $ of A bonds SHow many $ of B bonds 6 How many dollars of C bonds 7 How many dollar of D bond 8How many dollar of E bonds 19. 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. Annual Bond Return Maturity Risk Tax-Free 9.5% Long High Yes B 8.0% Short Low Yes 9.0% Long Low No D 9.0% Long High Yes E 9.0% Short High No The officer wants to invest at least 50% of the money in short-term issues and no more than 50% in high-risk issues. At least 30% of the funds should go into tax-free investments and at least 40% of the total annual return should be tax-free. Hint: the formula for the last condition/constraint is: .095A +0.08B +0.09D 20.4* (0.095A +0.08B +0.09C +0.09D +0.09E) In the body of you email answer the following and email back to cpaprofessor@aol.com by 10AM - attach your spreadsheet to the email. 1-What is the goal of this problem 2-how many decision variables are there? 3 what is the value of the objective function 3a Ignoring the constraints, the value of the objective function would have to be between and 4 how many $ of A bonds SHow many $ of B bonds 6 How many dollars of C bonds 7 How many dollar of D bond 8How many dollar of E bonds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions