Question
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions?
A.The total investment is
$9, 000, and the investor wants an annual return of $560 on the three investments.
B.The values in part A are changed to $22,000 and $1,370 respectively.
The client should invest $___ in AAA bonds, $___ in A bonds, and $___ in B bonds.
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