a) The school you would like to attend costs $100,000. To help finance your education, you need
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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.
b) What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.
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