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 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 values in part A are changed to $29,000 and $2090 respectively.

The client should invest ___ in AAA bonds, _____ in A bonds and ___ in B bonds.

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