Swot Analysis For Walmart
The current value of the EE Savings Bonds is $ 107,401. At the end of 2015, the Wal-Mart raised the federal fund's rate to 0.25 percent. Whether this is the first of many rate increases in 2016 remains to be seen, because there are so many factors at play on each side of the equation. If the Fed raises rates too quickly or by too much, it could lead to another stall in the economy. However, if the economy continues to expand, small increases in 2016 should be good for the U.S. economy, because it will be an affirmation of growth in jobs and income. While an increase in interest rates may spell good things for the economy in general, it is a mixed blessing for bond holders. This is because there is a converse ratio between bond prices and interest rates, What this means is that if interest rates go up, there is pressure to sell this bond while the value is high.
C. By selling the bonds, I can bear my study expenses and can invest the extra amount in the high return investment. I will lose the amount if sell at the coupon rate and the combination of the selling both in stocks and bonds will provide me some benefit if there may be any return on that stock. A disadvantage to selling both is that I reduce the coupon amount and the dividend amount. I believe selling a combination of both is the best bet. I can keep the predictability of bond payout at maturity and also look for gains in the future with my stock. I feel like this would help even out the risk