Skip to Main content

• Question 1
• Question 2
• Question 3
• Question 4
• Question 5
• Question 6

Question content area top

Part 1

An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 4%, on A bonds 6%, and on B bonds 11%.

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 if the total investment is

$14000, and the investor wants an annual return of $870 on the three investments?