What is the optimal solution

Assignment Help Business Management
Reference no: EM133054361

  • A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual return.
    The officer wants to invest at least 50% of the memory in short-term issues and no more than 50% in high-risk issues. At least 30% of the funds should go in tax-free investments and at least 40% of the total annual return should be tax free.
  • A. Formulate an LP model for this problem.
  • B.Create a spreadsheet model for this problem and solve it using Solver.
  • C. What is the optimal solution?

Bond 

Annual Return

Maturity

Risk

Tax-Free

A

9.5%

Long

High

Yes

B

8.0%

Short

Low

Yes

C

9.0%

Long

Low

No

D

9.0%

Long

High

Yes

E

9.0%

Short

High

No

 

 

Reference no: EM133054361

Questions Cloud

Hsbc adopts machine learning artificial intelligence : HSBC Holdings is a British multinational investment bank and financial services holding company. With a history dating back to 1865, HSBC first opened its doors
Competition for customer service jobs : With all the competition for customer service jobs in your organization, you are concerned that you might not be able to get a promotion that you feel you deser
Overview of salad dressing and pita chips : What is the market overview of salad dressing and pita chips? Based off a company ---Cedar valley selections
Influence in someone life and perceptions of leadership : What are some family traditions and customs that will influence in someone's life and perceptions of leadership?
What is the optimal solution : A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual return.
Calculate the company disbursement float : Calculate the company's disbursement float, collection float, and net float, if the collected funds were available in one day instead of three
Journalize the entry to accrue interest on December : On August 31, 2020 Alexander Ltd. borrowed $175,000 from a bank by signing a 12-year, 7% note payable. Journalize the entry to accrue interest on December
Event day management passport : The National Fastpitch Coaches Association (NFCA) is an organization that was established in 1983 to promote professional growth of fastpitch softball coaches a
Record stakeholder interactions : Who were the stakeholders of the business organisation who were present in the meeting and explain their responsibilities in the meeting.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd