Imagine that you work as a financial advisor. You have a client who would like to invest

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Question:

Imagine that you work as a financial advisor. You have a client who would like to invest $750,000-in-bonds. You have narrowed down your options to the following list:

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 $100-is-invested-in-Acme Chemical, the return at the end of the 9 years will be

PV-r=-100---0.0645= $6.45.

1.-No-more-than-25%-of the total funds should-be-invested in any one investment.

2. At least half-should-be invested-in-long-term-bonds that mature in ten years or more.

3.-No more than 35%-of the total funds should-be-invested in the combination of Dynastar, Eagle Visionand-Optipro.

And the-last-stipulation is that all $750,000 must-be-invested.

If the goal is to maximize your client's total return on the investment, how-much should they-invest in-each of the-six bonds? What is the corresponding maximum total return they can expect to receive?

State the problem mathematically as a linear programming problem (use the standard form we typically state LP problems in).

State the optimal solution and corresponding optimal value of the objective function found by Solver.