# 19

An investment firm recommends that a client invest in bonds rated AAA, A and B. The average yield on a AAA bond is 5%, on A bonds is 6% and B bonds is 9%. The client wants to invent twice as much in AAA bonds as in B bonds. How much should be invested in each bond type under the following conditions.

A. The total investment is $14,000 and the investor wants an annual return of $870 on the 3 investments.

The client should invest $_____ in AAA bonds, $_______in A bonds and $_______ in B bonds?

B. The total investment is $29,000 and the investor wants an annual return of $1,810 on the 3 investments.

The client should invest $_____ in AAA bonds, $_______in A bonds and $_______ in B bonds?