Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MY NOTES PRACTICE ANOTHER You invest in AAA-rated bonds, A-rated bonds, and B-rated bonds. The average yields are 4.5% on AAA bonds, 5% on
MY NOTES PRACTICE ANOTHER You invest in AAA-rated bonds, A-rated bonds, and B-rated bonds. The average yields are 4.5% on AAA bonds, 5% on A bonds, and 9% on B bonds. You invest twice as much in B bonds as in A bonds. Let x, y, and z represent the amounts invested in AAA, A, and B bonds, respectively. x + y + z = (total investment) 0.045x + 0.05y + 0.09z = (annual return) 2y- z = 0 Use the inverse of the coefficient matrix of this system to find the amount invested in each type of bond for the given total investment and annual return. (Round your answers to the nearest cent.) Total Investment $12,700 Annual Return $815 $ $ amount invested in B-bonds amount invested in AAA-bonds amount invested in A-bonds
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started