An investment firm recommends that a client invest in bonds rated? AAA, A, and B. The...

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An investment firm recommends that a client invest in bondsrated? AAA, A, and B. The average yield on AAA bonds is 4?%, on Abonds 5?%, and on B bonds 8?%. The client wants to invest twice asmuch in AAA bonds as in B bonds. How much should be invested ineach type of bond under the following? conditions? A.??The totalinvestment is ?$18 comma 000?, and the investor wants an annualreturn of ?$940 on the three investments. B.??The values in part Aare changed to ?$33 comma 000 and ?$1 comma 720?, respectively.A.??The client should invest ?$ nothing in AAA? bonds, ?$ nothingin A? bonds, and ?$ nothing in B bonds.

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4.5 Ratings (860 Votes)

The client invests in bonds rated AAA A and B The average yield on AAA bonds is 4 on A bonds 5 and on B bonds 8 and according to the question See Answer

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