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Imagine that you work as a financial advisor. You have a client who would like to invest $ 8 5 0 , 0 0 0
Imagine that you work as a financial advisor. You have a client who would like to invest $ in bonds. You have narrowed down your options to the following list:
tableCompanyInterest Rate,Years to Maturity,RatingAcme Chemical, ExcellentDynaStar GoodEagle Vision, FairMicromodeling ExcellentOptiPro GoodSabre Systems, Very Good
The interest rate describes the return of the investment as the simple interest earned over the length of the bond's life. That is if $ is invested in Acme Chemical, the return at the end of the years will be
$
No more than of the total funds should be invested in any one investment.
At least half should be invested in longterm bonds that mature in ten years or more.
No more than of the total funds should be invested in the combination of DynaStar, Eagle Vision, and Optipro.
The last stipulation is that all $ must be invested.
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