An investor wants to invest $30,000 in corporate bonds that are rated AAA, A, and B. The lower rated ones pay higher interest, but pose a higher risk as well. The average yield is 5% on AAA bonds, 6% on A bonds, and 10% on B bonds. Being conservative, the investor wants to have 5. twice as much in AAA bonds as in the B bonds. How much should she invest in each type of bond to have an interest income of $2000?
An investor wants to invest $30,000 in corporate bonds that are rated AAA, A, and B. The lower rated ones pay higher interest, but pose a higher risk as well. The average yield is 5% on AAA bonds, 6% on A bonds, and 10% on B bonds. Being conservative, the investor wants to have 5. twice as much in AAA bonds as in the B bonds. How much should she invest in each type of bond to have an interest income of $2000?
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter3: Solving Equation And Problems
Section3.4: Using Equations To Solve Problems
Problem 29P
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Define variables, write systems of equations, write coefficient matrix, the B matrix and the solution matrix, x
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