Minimizing Net Interest Cost in Municipal Bond Bidding
Management Science · 1981 · Volume 27 · Issue 4
Abstract
The problem of minimizing net interest cost (NIC) on new issues of tax-exempt debt securities is formulated as an integer linear programming problem. The formulation (for one variant) is a p -median problem with one additional constraint. Other variants are also closely related to the p -median problem. A dual ascent procedure for solving this problem class is presented and is incorporated in a branch and bound algorithm. Computational results are presented for a number of real world problems.
Keywords
finance, securities, integer programming
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