2006 March | Corporate Bonds

Archive for March, 2006

Corporate Bonds To Invest In

March 29th, 2006

corporate bonds to invest in
Question: please please please?

FINANCIAL PLANNING john has $20,000 to invest.As his financial consultant ,you recommend that he invest in Treasury bills that yield 5% , Treasury bonds that yield 7% and Corporate Bonds that yield 9% . John wants to have an annual income of $1280 and the a,mount invested in Treasury bills must be two times the amount invested in Corporate Bonds.Find the amount in each investment.

Answer: This requires a lot of trial and error or you could set up an equation like a+b+c=20000
and since a+b+2a=20000. You have to continue on like that and the problem should get simpler. G'Luck

Stock Investment Tips : How to Invest in a Corporate Bond