TVM problem: The school you would like to attend costs $100,000. To help finance your education, you
Fantastic news! We've Found the answer you've been seeking!
Question:
TVM problem:
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 (each with a $1,000 face value and a 3.25% coupon rate) that are five years from their 10-year maturity date, or a combination of both.
What is the appropriate data and calculations that would be perform to make this decision?
What's the final value I'll have?
Additional information: Daily Treasury Real Yield Curve Rates for 5 years is -0.73 (semi-annual bond).
You must calculate the exact number of shares to sell (not all) of AAPL and the exact number of bonds to sell(not all) bond to meet the payment of $100,000.
Posted Date: