Consider a Person Who Invests in AAA-Rated Bonds,A-Rated Bonds,and B-Rated $$\begin{array} { | c | c | } \hline \text { Total Investment } & \text { Annual Return } \\\hline \$ 12,000 & 890 \\\hline\end{array}$$

question 37

Multiple Choice

Consider a person who invests in AAA-rated bonds,A-rated bonds,and B-rated bonds.The average yields are 6.5% on AAA bonds,7% on A bonds,and 9% on B bonds.The person invests twice as much in B bonds as in A bonds.Let x,y and z represent the amounts invested in AAA,A,and B bonds,respectively. $$\begin{array} { | c | c | } \hline \text { Total Investment } & \text { Annual Return } \\\hline \$ 12,000 & 890 \\\hline\end{array}$$ $$\left\{ \begin{array} { c l } x + y + z & = 663,000 \text { (total investment) } \\0.065 x + 0.07 y + 0.09 z & = 47,000 \text { (annual retum) } \\2 y - z & = 0\end{array} \right.$$ Use the inverse of the coefficient matrix of this system to find the amount invested in each type of bond.
​

• A)$142,000 in AAA-rated bonds $451,000 in A-rated bonds
• $71,000 in B-rated bonds
• B)$450,000 in AAA-rated bonds $71,000 in A-rated bonds
• $142,000 in B-rated bonds
• C)$143,000 in AAA-rated bonds $71,000 in A-rated bonds
• $450,000 in B-rated bonds
• D)$72,000 in AAA-rated bonds $450,000 in A-rated bonds
• $142,000 in B-rated bonds
• E)$450,000 in AAA-rated bonds $142,000 in A-rated bonds
• $70,000 in B-rated bonds

Examine the ideological differences within the Democratic Party and between Democrats and Republicans.

Understand the global role of the United States in resolving ethnic and regional conflicts during the Clinton administration.

Recognize Al Qaeda's evolution and impact on global security after 9/11.

Analyze the causes and attempts to mitigate the economic downturn beginning in 2007.

---

Definitions:

Consumer Derives

The satisfaction or utility that a consumer obtains from the consumption of goods and services.

Total Utility

The complete fulfillment obtained from the consumption of a specific overall amount of a product or service.

Satisfaction

The feeling of fulfillment or contentment one derives from meeting a need or desire.

Marginal Utility

The added utility or pleasure derived by a consumer from consuming another unit of a good or service.