An investment firm recommends that a client invest in bonds
January 2nd, 2018
An investment firm recommends that a client invest 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?A. The total investment is $25,000, and the investor wants an annual return of $1,810 on the three investments.B. The values in part A are changed to $49,000 and $3,530, respectively.A.The client should invest $nothingin AAA bonds,$nothingin A bonds, and $nothingin B bonds.
