An investment firm recommends that a client invest in bonds rated AAA. A, and B. The average yield on AAA bonds is 5%, on A bonds 7% and on B bond510%. 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 investment is “1000‘ and the investor wants an annual retum ol $940 on the three investments. B. The values in part A are changed to $29.000 and $2,100. respectively. A. The client should invest S in AAA bonds. 5 in A bonds, and S 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 5%, on A bonds 7% and on B bond510%. 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 investment is “1000‘ and the investor wants an annual retum ol $940 on the three investments.
B. The values in part A are changed to $29.000 and $2,100. respectively. A. The client should invest S in AAA bonds. 5 in A bonds, and S in B bonds.

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