Running Head: FINAL PROJECT PART III1FIN-320 Final Project Part IIISouthern New Hampshire University19 April 2020
Final Project Part III21 School Versus WorkA. The decision to sell stocks and bonds in order to finance my education would start with finding out how much money my stocks and bonds are worth. After finding this informationI would be able to make a better decision on which ones to sell or if I should sell a combination of the two. Using Google Finance, I found the current price of Apple Inc, (AAPL) stock to be $282.80 as of 7:59 PM EDT April 18, 2020. Selling my 500 shares of Apple stock would get me $141,400. This would mean that I would have enough to finance my education with selling my stocks alone. The 100 Apple bonds have a face value of $1000, the coupon rate is 3.25%. According to Markets Insider Apple payments are done two time per year. So that is the coupon rate of 3.25% / 2 time per year, so that is 1.63% semi-annually. The semiannual payments come out $1000 x .0.0163 which is $16.30. There are 5 years left until the maturity, which means that there are 10 payments. By taking this information put using a Financial Calculator I can find the current value of my bones. The calculations are entered as; N=10, I/Y=1.63, PMT=$16.30, and FV=1000. Solve for present value (PV) and multiply by 100. This calculation come out to $100,243.00. Given that sell my stocks or bonds would give me enough to pay for the school, I would choose to sell a combination of the two. This was my portfolio would remain diversified. B. Stocks and bonds each have a different level of risk and behave differently in responseto changes in the financial markets. By selling a portion of both stock and bonds to pay for school, I can still have risky shares in the market and have lower risk bonds at the same time.