An investor wants to invest $30,000 in corporate bonds that are rated AAA, A, and B. The lower rated ones pay higher interest, but pose a higher risk as well. The average yield is 5% on AAA bonds, 6% on A bonds, and 10% on B bonds. Being conservative, the investor wants to have 5. twice as much in AAA bonds as in the B bonds. How much should she invest in each type of bond to have an interest income of $2000?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Define variables, write systems of equations, write coefficient matrix, the B matrix and the solution matrix, x

An investor wants to invest $30,000 in corporate bonds that are rated AAA, A, and B. The lower
rated ones pay higher interest, but pose a higher risk as well. The average yield is 5% on AAA
bonds, 6% on A bonds, and 10% on B bonds. Being conservative, the investor wants to have
5.
twice as much in AAA bonds as in the B bonds. How much should she invest in each type of
bond to have an interest income of $2000?
Transcribed Image Text:An investor wants to invest $30,000 in corporate bonds that are rated AAA, A, and B. The lower rated ones pay higher interest, but pose a higher risk as well. The average yield is 5% on AAA bonds, 6% on A bonds, and 10% on B bonds. Being conservative, the investor wants to have 5. twice as much in AAA bonds as in the B bonds. How much should she invest in each type of bond to have an interest income of $2000?
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