An investment firm recommends that a client invest in bonds rated AAA, A, and B. The...

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An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. 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 in the total investment is $25,000, and the investor wants an annual return of $1810 on the three investments? An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. 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 in the total investment is $25,000, and the investor wants an annual return of $1810 on the three investments?

Answer rating: 100% (QA)

Lets denote the amount invested in AAA bonds as A the amount ... View the full answer