Question

An investment firm recommends that a client invests in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 7%, and on B bonds 12%. 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? The total investment is $13,000, and the investor wants an annual return of $940 on the three investments. The values in part A are changed to $23,000 and $1,660, respectively. The Client should invest $_ in AAA bonds. $_ in A bonds, and $___ in B Bonds The Client should invest $_ in AAA bonds. $_ in A bonds, and $___ in B Bonds

          An investment firm recommends that a client invests in bonds
rated AAA, A, and B. The average yield on AAA bonds is 5%,
on A bonds 7%, and on B bonds 12%. 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?
The total investment is $13,000, and the investor wants an
annual return of $940 on the three investments.
The values in part A are changed to $23,000 and $1,660,
respectively.

The Client should invest $_____ in AAA bonds. $_______ in A
bonds, and $_______ in B Bonds
The Client should invest $_____ in AAA bonds. $_______ in A
bonds, and $_______ in B Bonds

Added by James M.

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