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This is the app page of ODMO program for Maximizing long-term inverstment.
Supposing that you have an amount of money $
to invest over a period of time 5 years for 4 bonds. Each bond pays an interest rate that compounds per year and pay the principle plus compound interest at the end of a maturity period.
The information about bonds is given in the following table.
Bonds
Purchased in year
Maturity period of year
Interest rate (%)
B1
\(p_1=\)1
\(m_1=\)4
\(ir_1=\)
%
B2
\(p_2=\)5
\(m_2=\)1
\(ir_2=\)
%
B3
\(p_3=\)2
\(m_3=\)4
\(ir_3=\)
%
B4
\(p_4=\)2
\(m_4=\)3
\(ir_4=\)
%
How is to maximize the total profit after 5 years?
[CLICK] here to solve the optimization problem
Solve Problem
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