Question
An investment firm recommends that a client invest in bonds ratedAAA, A, and B. The average yield on AAA bonds is 4%, on A bonds
An investment firm recommends that a client invest in bonds ratedAAA, A, and B. The average yield on AAA bonds is 4%, on A bonds 5%, and on B bonds 8%. 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 followingconditions?
A.The total investment is $25,000 and the investor wants an annual return of $1,310 on the three investments.
B.The values in part A are changed to $38,000 and $1,990, respectively.
A.The client should invest ( )AAAbonds, ( ) in Abonds, and ( ) B bonds
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