Question
I. School Versus Work A. The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or
I. School Versus Work A. The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.
I am very confused on what the bonds will be worth at 25 years vs. 30 years. This isn't making any sense to me, I know that each year the bond earns $4250 in coupon interest, but what formula should I use or how do I calculate this?!? All I'm trying to figure out is what the bonds will be if I cash them out at year 25 or if I wait until they mature at year 30.
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