School versus Work
To Sell or Not Sell
Any EE savings bond that is five years to maturity must have been issued at half their face value. The bonds do increase in value in order to be worth at least to the face value (Babson, 2010). During the extended maturity period the bond continues to earn interest for the extension.
At the next accrual, the value of the EE series of bonds will be $170.12 with a total interest gained at $120.12. This means that in any case the student sells the 1000 EE bonds; he will have $170,120 (TOOLS, 2016).
If he decides to sell the shares at Apple, the current share price is $111.12 per share. 1000 shares will provide him with $111,120.
Advantages and Disadvantages
Having a combination of stock and bonds is the …show more content…
Currently, the value of the share is at $5000 which is similar to the bonus which is being offered. Mathematically, there could be a future value which is either positive or negative depending on how the shares of the company will perform. If the value of the shares will go up, then it will be good to take up the shares, and if the value of the share will drop then it will be better to take up the bonus. Mathematically, the best option will be to collect the shares and wait for the future value increase. The value of $50 tomorrow is more likely to be higher tomorrow than today.
Advantages and Disadvantages
The advantage of taking the bonus is that there is no uncertainty over what will happen in the market in the future. It means that what is collected today is the value for today. It has a disadvantage in the sense that it will lose any gains that will be made in terms of changes in the share prices. The option of the share prices is disadvantageous since it is brought about with certain levels of uncertainty. When an investor is uncertain over the future, it means that they risk losing the current value. It is advantageous as it has the potential of having a higher value in the
To Sell or Not Sell
Any EE savings bond that is five years to maturity must have been issued at half their face value. The bonds do increase in value in order to be worth at least to the face value (Babson, 2010). During the extended maturity period the bond continues to earn interest for the extension.
At the next accrual, the value of the EE series of bonds will be $170.12 with a total interest gained at $120.12. This means that in any case the student sells the 1000 EE bonds; he will have $170,120 (TOOLS, 2016).
If he decides to sell the shares at Apple, the current share price is $111.12 per share. 1000 shares will provide him with $111,120.
Advantages and Disadvantages
Having a combination of stock and bonds is the …show more content…
Currently, the value of the share is at $5000 which is similar to the bonus which is being offered. Mathematically, there could be a future value which is either positive or negative depending on how the shares of the company will perform. If the value of the shares will go up, then it will be good to take up the shares, and if the value of the share will drop then it will be better to take up the bonus. Mathematically, the best option will be to collect the shares and wait for the future value increase. The value of $50 tomorrow is more likely to be higher tomorrow than today.
Advantages and Disadvantages
The advantage of taking the bonus is that there is no uncertainty over what will happen in the market in the future. It means that what is collected today is the value for today. It has a disadvantage in the sense that it will lose any gains that will be made in terms of changes in the share prices. The option of the share prices is disadvantageous since it is brought about with certain levels of uncertainty. When an investor is uncertain over the future, it means that they risk losing the current value. It is advantageous as it has the potential of having a higher value in the