Question: Suppose the new bond's interest rate is 7.5%, write down the constraint for Year 7.

Let F = total funds required B1 = units of bond 1 purchased at the beginning of year 1 B2 = units of bond 2 purchased at the beginning of year 1 B3 = units of bond 3 purchased at the beginning of year 1 Si= amount of $ placed in savings at the beginning of year i(i= 1, 2, ..., 8) Question:Suppose the new bond's interest rate is 7.5%, write down the constraint for Year 7. Hewlitt Corporation has incurred the following obligation over the next 8 years due to the early retirement program. Cash requirements due at the beginning of each year are shown below. The corporate treasurer must determine how much money has to be set aside today to meet the 8-year financial obligations as they come due. The financing plan for the retirement program includes investments in govt. bonds as well as savings. The choices for investments in government bonds are shown below, The bonds should be purchased now, at the beginning of year 1. The government bonds have a par value of $1000, which means even with different prices each bond pays $1000 at maturity. The rates shown are based on the par value. For example, if one unit of Bond 1 is purchased, Hewlitt must pay $1,150 at beg. of year 1, receive $88.75 (=8.875% of $1,000) at beg. of year 2, 3, 4, 5, and receive $1000+88.75 at beg. of year S when the bond matures. It is assumed that each year, any funds not invested n bonds will be placed in savings earning interest at an annual rate of 4%. Hewlitt wants to minimize Let F = total funds required B1 = units of bond 1 purchased at the beginning of year 1 B2 = units of bond 2 purchased at the beginning of year 1 B3 = units of bond 3 purchased at the beginning of year 1 Si= amount of $ placed in savings at the beginning of year i(i= 1, 2, ..., 8) Question:Suppose the new bond's interest rate is 7.5%, write down the constraint for Year 7. Hewlitt Corporation has incurred the following obligation over the next 8 years due to the early retirement program. Cash requirements due at the beginning of each year are shown below. The corporate treasurer must determine how much money has to be set aside today to meet the 8-year financial obligations as they come due. The financing plan for the retirement program includes investments in govt. bonds as well as savings. The choices for investments in government bonds are shown below, The bonds should be purchased now, at the beginning of year 1. The government bonds have a par value of $1000, which means even with different prices each bond pays $1000 at maturity. The rates shown are based on the par value. For example, if one unit of Bond 1 is purchased, Hewlitt must pay $1,150 at beg. of year 1, receive $88.75 (=8.875% of $1,000) at beg. of year 2, 3, 4, 5, and receive $1000+88.75 at beg. of year S when the bond matures. It is assumed that each year, any funds not invested n bonds will be placed in savings earning interest at an annual rate of 4%. Hewlitt wants to minimize