Three retired couples each require an additional annual income of $2000 per year. As their financial consultant, you recommend that they invest some money in Treasury bills that yield 7%, some money in corporate bonds that yield 9%, and some money in “junk bonds” that yield 11%. Prepare a table for each couple showing the various ways that their goals can be achieved:
(a) If the first couple has $20,000 to invest.
(b) If the second couple has $25,000 to invest.
(c) If the third couple has $30,000 to invest.
(d) What advice would you give each couple regarding the amount to invest and the choices available?
