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FIN-320 Final Project Part 31Fin-320 Final Project Part 3Teri RobinsonSouthern New Hampshire UniversityFINAL PROJECT PART III
FIN-320 Final Project Part 32I. School versus WorkA. 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 youbought five years ago, 100 Apple bonds (3.25% coupon rate) that are five years fromtheir 10-year maturity date, or a combination of both. Provide the appropriate dataand calculations that you would perform to make this decision.10-5 (years) = 5years 3.25% of $100,000 = $3250 coupon rate each year.First year Second Year Third Year Fourth Year Firth Year will be 100,000 + 3250 = $103250= $3250 = $3250 = $3250 = $3250The due amount for the bond for 5-year bond sales will be (3250 ×4) + 103250 = $116250The best decision that I would make after the projection is selling the 500 apple stock shares rather thantrust on the 100 Apple bonds, which will take another five years to mature and incur more costs.B. What are the advantages and Disadvantages of selling a combination of stocks and bonds?Be sure to support your answer.AdvantagesThe shared cost is one of the benefits relished in the combination of stock and bond trades.Moreover, stock and bond combination selling is associated with risk versus return parity judgment byinvestors. Such investor judgment offers a incredible advantage in the selling of a combination of stockand bonds. The combination sale also means that an investor will reap a high amount of money fromthe committed business effort at once. Such a lump sum money flow is a potential reflection of anencouraging advantage to the stock and bonds selling combination. DisadvantagesContrary to the associated advantage, irregularities in making a prompt decision-based stand onthe ratio distribution while selling a combination of both stocks and bonds is a great disadvantage thatan investor that adopts the mentioned selling method of its discussed properties is likely to incur. Adecision on what should take the highest ratio is sometimes difficult to factor. Of course, bothinvestments are associated with positive returns. The combined sales of both stocks and bonds areassociated with overwhelming fund flow that can be an ideal issue for the affected investor. For that