The Solution
If we solve the model, we get the following values:
Global optimal solution found.
Objective value: 195.7265
Extended solver steps: 4
Total solver iterations: 27
Variable Value
LUMP 195.7265
BUY( A) 96.00000
BUY( B) 90.00000
SINVEST( 1) 4.796526
SINVEST( 2) 5.598387
SINVEST( 3) 5.432322
SINVEST( 4) 3.259615
SINVEST( 5) 0.000000
SINVEST( 6) 90.61000
SINVEST( 7) 81.08440
SINVEST( 8) 70.17778
SINVEST( 9) 56.83489
SINVEST( 10) 40.95828
SINVEST( 11) 22.44661
SINVEST( 12) 0.1944784
SINVEST( 13) 65.05226
SINVEST( 14) 34.65435
SINVEST( 15) 0.4052172E-01
Solution: PBOND
You have been able to cover a total future debt of $319 million with a lump payment of $195.73 million. To do this, you buy 96 A bonds, 90 B bonds, put $4.8 million into short-term investment funds and hold $10 million in cash to pay prizes in the initial period.