Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

question c. An investment firm recommends that a client invest in ANA, A- and B-rated bonds. The average yield on M bonds is 6%, on

question c. image text in transcribed
An investment firm recommends that a client invest in ANA, A- and B-rated bonds. The average yield on M bonds is 6%, on AB Client wants to invest twice as much in AAA bonds as in bonds. How much should be invested in each type of bond under the fol (a) through (c) below. a Let 2x represent the amount invested in AA bonds, y be the amount invested in A bonds, and xbe the amount invested into B linear equations. Choose the correct answer below. O A. 2x+y+0.08x = 1580 0.06(2x) +0.065y + x = 24,000 B. 0.06(2x) +0.065y +0.08x = 1580 2x + y + x = 24,000 OC. 0.06% +0.065y +0.08x = 24,000 2x + y + x = 1580 OD. 0.06(2x) +0.065y + x = 1580 4x + y +0.08x = 24,000 The total investment is $24,000, and the investor wants an annual return of $1580 on the three investments. They should invest $ 8000 at 6%, $ 12000 at 6.5%, and $ 4000 at 8%. b. The values in part (a) are changed to $33,000 and $2185, respectively. They should invest $ 16,000 at 6%, $ 9000 at 6.5%, and $ 8000 at 8%. c. The values in part (a) are changed to $45,000 and $2995, respectively. They should invest $ at 6%, $ at 6.5%, and $ at 8%. Enter your answer in the edit fields and then click Check Answer. All parts showing Clear All

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Finesse An Accounting Guide For Entrepreneurs

Authors: TaShara Ramese

1st Edition

1732510903, 978-1732510906

More Books

Students also viewed these Accounting questions

Question

Discuss the fiduciary requirements that are imposed by Rule 1.4.

Answered: 1 week ago

Question

Discuss the importance of workforce planning.

Answered: 1 week ago

Question

Differentiate between a mission statement and a vision statement.

Answered: 1 week ago