Let be the amount in treasury bills which yeilds
simple intrest.
Let be the amount in treasury bonds which yeilds
simple interst.
Let be the amount in corporate bonds which yeilds
simple intrest.
Since the total investment is .
.
Total income of Kelly is .
.
The investment on the treasury bills is to be more than the investment in the corporate bonds.
Therefore, .
Substiute in equation
.
Substiute in equation
.
Multiple to each side the equation by
.
Add equation and equation
to eliminate
.
Substiute in
.
Substiute the value and
in equation
.
The solution is and
.
Therefore, kelly should invest in treasury bills,
in treasury bonds and
in corporate bonds.
Kelly should invest in treasury bills,
in treasury bonds and
in corporate bonds.