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 if the total investment is $18,000, and the investor wants an annual return of $1,300 on the three investments? www The client should invest $ in AAA bonds, $ in A bonds, and $[ in B bonds.
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 if the total investment is $18,000, and the investor wants an annual return of $1,300 on the three investments? www The client should invest $ in AAA bonds, $ in A bonds, and $[ in B bonds.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text: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 if the total investment is $18,000, and the investor wants an annual
return of $1,300 on the three investments?
The client should invest $ in AAA bonds, $
www
in A bonds, and $
in B bonds.
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