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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 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 $14,000, and the investor wants an annual return of $870 on the three investments. B. The values in part A are changed to $29,000 and $1,800, respectively. A. The client should invest $(in AAA bonds, $in A bonds, and $in B bonds
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