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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
An investment firm recommends that a client invest in bonds rated AAA, and The
average yield on AAA bonds is on A bonds and on bonds The client wants
to invest twice as much in AAA bonds as in bonds. How much should be invested in each
type of bond if the total investment is $ and the investor wants an annual return of
$ on the three investments?
The client should invest $ in AAA bonds, $ in A bonds, and $ in B bonds.
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