An investment broker is instructed by her client to invest


An investment broker is instructed by her client to invest up to $20,000; some in a junk bond yielding 9% per annum and some in Treasury bills yielding 7% per annum. The client wants to invest at least $8000 in Treasury bills and no more than $12,000 in junk bond. a) How much should the broker recommend that the client place in each investment to maximize income if the client insist that the amount invested in Treasury bills must equal or exceed the amount placed in junk bond? Show you work completely. b) How much should the broker recommend that the client place in each investment to maximize income if the client insists that the amount invested in Treasury bills must not exceed the amount placed in junk bond? Show you work completely.

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Operation Management: An investment broker is instructed by her client to invest
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