Question
The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell any of
The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell any of your 500 shares of Apple stock you bought five years ago, 100 Apple bonds (each with a $1,000 face value and a 3.25% coupon rate) that are five years from their 10-year maturity date, or a combination of both. Provide the appropriate data and calculations that you would perform to make this decision.
Value of bonds (100 @ $100)
5 years from maturity Y1= ($10000 x 3.25%) = 325 Y2= Y3= Y4= Y5= + $10000 TOTAL: $11625
Stock Value: 500 Shares @ $105.11 (10/27/2014) = $52,555.00
Is this right?
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