Question: Suppose that you have $ 1 2 , 0 0 0 to invest this year. You wish to hold a diversified portfolio of 5 0

Suppose that you have $12,000 to invest this year. You wish to hold a diversified portfolio of 50% bonds and 50% preferred stocks. Tax rules limit total contributions to all your IRA accounts to $6,000 per year. Which investments would you purchase and in which savings vehicles would you hold these investments? How much after-tax cash accumulation (F) would this strategy generate at the end of your 10-year investment horizon?

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