Question Image transcription text INPUT Bond 1 Bond 2 Price 5 980.00 5 965.00 Coupon % 6%
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Question:
I need help in evaluating the below scenarios:
1) IF the liabilities in each of years 6-14 increase by 2500 how much would the cost of the optimal portfolio increase by?
2) In row 10 of the sensitivity report for the decision variable corresponding to the bond 1 decision variable, the objective coefficient is 0 and the allowable increase is 109.03.
a) If the cost of buying each unit of bond 1 increases by 100 dollars to 1080 then in the new optimal solution we will still buy 95.80 bonds of type 1 and 90.15 bonds of type 2.
b) If the cost of buying each unit of bond 1 incre
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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