In the RedBrand example, the arc capacity is the same for all allowable arcs. Modify the model so that each arc has its own arc capacity. You can make up the arc capacities.

CH$14,41$

In the Armco pension fund model, suppose there is a fourth bond, bond $4.$ Its unit cost in year $1$ is $$1020,$ it returns coupons of $$70$ in years $2$ through $7$ and a payment of $$1070$ in year $8.$ Modify the model to incorporate this extra bond, and reoptimize. Does the solution change$$that is$,$ should James purchase any of bond $4?$