# Question

In the pension fund problem, suppose there is a fourth bond, bond 4. Its unit cost in 2010 is $1020; it returns coupons of $70 in years 2011 through 2016 and a payment of $1070 in 2017. Modify the model to incorporate this extra bond, and re-optimize. Does the solution change—that is, should James purchase any of bond 4?

## Answer to relevant Questions

In the pension fund problem, suppose there is an upper limit of 60 on the number of bonds of any particular type that can be purchased. Modify the model to incorporate this extra constraint and then optimize. How much more ...Continuing the previous problem in a slightly different direction, continue to use the Money_allocated cell as a changing cell, but add a constraint that it must be less than or equal to any value, such as $195,000, that is ...Expand the capital budgeting model in Figure 14.40 so that there are now 20 possible investments. You can make up the data on cash requirements, NPVs, and the budget. However, use the following guidelines: The cash ...In the original Western Airlines set-covering model in Figure 14.52, we used the number of hubs as the objective to minimize. Suppose instead that there is a fixed cost of locating a hub in any city, where these fixed costs ...For each of the following, answer whether it makes sense to multiply the matrices of the given sizes. In each case where it makes sense, demonstrate an example in Excel, where you make up the numbers. a. AB, where A is 3 x 4 ...Post your question

0