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FIN-320 Final Project Part 3 1 Fin-320 Final Project Part 3 Teri Robinson Southern New Hampshire University FINAL PROJECT PART III
FIN-320 Final Project Part 3 2 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 any of your 500 shares of Apple stock you bought five years ago, 100 Apple bonds (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. 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 = $3250 The due amount for the bond for 5-year bond sales will be (3250 ×4) + 103250 = $116250 The best decision that I would make after the projection is selling the 500 apple stock shares rather than trust 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. Advantages The 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 by investors. Such investor judgment offers a incredible advantage in the selling of a combination of stock and bonds. The combination sale also means that an investor will reap a high amount of money from the committed business effort at once. Such a lump sum money flow is a potential reflection of an encouraging advantage to the stock and bonds selling combination. Disadvantages Contrary to the associated advantage, irregularities in making a prompt decision-based stand on the ratio distribution while selling a combination of both stocks and bonds is a great disadvantage that an investor that adopts the mentioned selling method of its discussed properties is likely to incur. A decision on what should take the highest ratio is sometimes difficult to factor. Of course, both investments are associated with positive returns. The combined sales of both stocks and bonds are associated with overwhelming fund flow that can be an ideal issue for the affected investor. For that

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