Question

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

An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. The average yield on AAA bonds is 44​%,on A bonds 66​%,and on B bonds 1111​%.

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 if the total investment is

​$21,00021,000​,and the investor wants an annual return of ​$1,3101,310 on the three investments. How much money should the client invest in AAA bonds, in A bonds and in B bonds

Homework Answers

Answer #1

Please give me a like............

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The...
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. 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 13,000?, and the investor wants an annual return of ?$940 on the three investments. B.??The...
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The...
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 bonds 12%. 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 $22,000, and the investor wants an annual return of $1590 on the three...
An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. The...
An investment firm recommends that a client invest in bonds rated​ AAA, A, and B. The average yield on AAA bonds is 6​%, on A bonds 7​%, and on B bonds 10​%. 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 ​$13,000​, and the investor wants an annual return of ​$940 on the three investments....
Part 2: Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios...
Part 2: Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $50,000 to invest. B&R's investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 12%, while the Blue Chip fund has a projected...
Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to...
Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $50,000 to invest. B&R's investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 12%, while the Blue Chip fund has a projected annual return...
A brokerage firm has just been instructed by one of its clients to invest $600,000 of...
A brokerage firm has just been instructed by one of its clients to invest $600,000 of her money. The analysts at the brokerage firm are considering the following options for investment:                                                                                           Projected Rate Investment Option            of Return (%) Municipal bonds                          2.4 Company A stocks                      8.0 Company B stocks                      10.2      Company C stocks                       9.5 The client has specified the following guidelines: - Municipal bonds should constitute at least 30% of the money invested. - At least 50% of...
Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to...
Blair & Rosen, Inc. (B&R) is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of its clients. A client who contacted B&R this past week has a maximum of $55,000 to invest. B&R's investment advisor decides to recommend a portfolio consisting of two investment funds: an Internet fund and a Blue Chip fund. The Internet fund has a projected annual return of 17%, while the Blue Chip fund has a projected annual return...
Problem 2-39 Innis Investments manages funds for a number of companies and wealthy clients. The investment...
Problem 2-39 Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs $50 and provides an annual rate of return of 10%; each unit of the money market fund costs $100 and provides an annual rate...
A new client comes into an investment office. She is looking to invest money into an...
A new client comes into an investment office. She is looking to invest money into an IRA. She has determined that she wants to retire at age 68 and be able to withdraw $3500 a month from her IRA for the next 25 years. The IRA at that time will return 4% interest. If she is 33 years old right now and the IRA she wants to invest in can return 11% interest until she retires, how much should she...
Question 3 A brokerage firm has been tasked with investing exactly $200,000 for a new client....
Question 3 A brokerage firm has been tasked with investing exactly $200,000 for a new client. The client has asked that the broker select promising stocks and bonds for investing subject to the following guidelines: 1) At least 30% of the total investment should be in municipal bonds 2) At least 20% of the total investment should be in real estate stock 3) At least 20% of the total investment should be in domestic automobile stock 4) At least 25%...