A trust officer at the blacksburg national bank needs to


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. Bond Annual rate in 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 The officer wants to invest at least 50% of the money 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 ?or this problem. b. Create a spreadsheet model for this problem, and solve it using Solver. c. What is the optimal solution?

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