Accountancy, asked by noelRohith5184, 1 year ago

A retired person wants to invest upto an amount of rs.30,000 in fixed income securities. His broker recommends investing in two bonds: bond a yielding 7% and bond b yielding 10%. After some consideration, he decides to invest at most of rs.12,000 in bond b and atleast rs.6,000 in bond


a. He also wants the amount invested in bond a to be atleast equal to the amount invested in bond


b. What should the broker recommend if the investor wants to maximize his return on investment?

Answers

Answered by Anonymous
17

Explanation:

A retired person wants to invest upto an amount of rs.30,000 in fixed income securities. His broker recommends investing in two bonds: bond a yielding 7% and bond b yielding 10%. After some consideration, he decides to invest at most of rs.12,000 in bond b and atleast rs.6,000 in bond

a. He also wants the amount invested in bond a to be atleast equal to the amount invested in bond

b. What should the broker recommend if the investor wants to maximize his return on investment?

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