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An investment first recommends that a client invest in bonds rated AAA, A and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds...
An investment first recommends that a client invest in bonds rated AAA, A and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds 9%. 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 under the following conditions?
A. The total value investment is $26, 000, and the investor wants an annual return of $1,620 on the three investments.
B. The values in part A are changed to $45,000 and $2,800, respectively.