True Interest Cost in Municipal Bond Bidding: An Integer Programming Approach
针对市政债券竞标中最小真实利息成本问题，将其建模为非线性整数规划，并开发线性化方法嵌入分支定界算法，用实际数据验证了效果。
Over $47 billion of tax exempt debt issues were sold to the public in 1982. A portion of this total was offered to municipal bond underwriters under a competitive bidding system using the criterion of minimum true interest cost (internal rate of return). The TIC bidding problem may be formulated as a nonlinear integer program. We develop a linearization which is embedded in a special purpose integer linear branch and bound algorithm. Computational results for several actual bidding problems are presented.