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What should the broker recommend

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Reference no: EM131131131

A retired couple has up to $30000 to invest in fixed-income securities.

There broker recommends investing in two bonds: one in AAA bond yielding 8%; the other a B+ bond paying 12%. After some consideration, the couple decides to invest at most $12000 in the B+-rated bond and atleast $6000 in the AAA bond.

They also want the amount invested in the AAA bond to exceed or equal the amount invested in the B+ bond.

What should the broker recommend if the couple wants to maximise the return on their investment?

Reference no: EM131131131

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