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Hurry please B. An Australian business man planned to invest $20 000 in corporate bonds that are rated X, Y and Z. The lower rated
Hurry please
B. An Australian business man planned to invest $20 000 in corporate bonds that are rated X, Y and Z. The lower rated ones pay higher interest but are a higher risk as well. The average yield is 5% on X bonds, 6% on Y bonds and 12% on Y bonds. Being conservative, the investor wants to invest twice as much in X bond as in Y bonds. How much should be invested in each type of bond to have an interest income of $5000? B. An Australian business man planned to invest $20 000 in corporate bonds that are rated X, Y and Z. The lower rated ones pay higher interest but are a higher risk as well. The average yield is 5% on X bonds, 6% on Y bonds and 12% on Y bonds. Being conservative, the investor wants to invest twice as much in X bond as in Y bonds. How much should be invested in each type of bond to have an interest income of $5000
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