Investor Matt has $698,000 to invest in bonds. Bond A yields an average of 5.8% and the bond B yields 7.3%. Matt requires that at least 4 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. What is the maximum return? $ per year. Round to the nearest cent.
Investor Matt has $698,000 to invest in bonds. Bond A yields an average of 5.8% and the bond B yields 7.3%. Matt requires that at least 4 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. What is the maximum return? $ per year. Round to the nearest cent.
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
Problem 1PS
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Investor Matt has $698,000 to invest in bonds. Bond A yields an average of 5.8% and the bond B yields 7.3%. Matt requires that at least 4 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. What is the maximum return?
$ per year. Round to the nearest cent.
appreciate the help
thx!
))
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