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 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 investments.

B.) The values in part A are changed to $35,000 and $2530, respectively.

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