# School Versus Work Research Paper

839 Words 4 Pages
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.
Having a combination of stock and bonds is the
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.
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

• ## Swot Analysis For Walmart

This analysis is based on the following facts: The school you would like to attend costs \$100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with \$100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date, or a combination of both. First, we need to know what 1,000 shares of Wal-Mart stock is currently worth. 1,000 shares of Wal-Mart are currently worth approximately; \$74,650. Additionally, we have calculated that the 1,000 Savings bonds (w \$100 denominations and 4.25% coupon rate) five years from their 30-year maturity date are worth \$107,401.34.…

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• ## Finance Case Study: Potential Investment

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• ## Moserk Company Ratio Analysis

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• ## Goodyear Case Study

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• ## Characteristics Of Callable Bonds

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• ## Explain Why Do Developing Countries Need Fixed Exchange Rate

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• ## Relationship Between Risk And Rate Of Investment

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• ## Two Main Causes Of Agency Conflicts Between Shareholders And Management

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• ## Chapter 7: Opmum Risk Portfolios

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