School Versus Work

1. 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. Provide the appropriate data and calculations that you would perform to make this decision.

You need to figure out how to finance your education. You will need to look up the current market value of Apple Stock and you own 1,000 shares of the stock.  Do you want to sell this investment or a part of the investment to help pay for your $100,000 school bill?  Why or why not?  In addition, you own 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years from their 30-year maturity date. Do you want to cash in all or part of these bonds to help finance your education? Why or why not?  Please see attached excel document.

Series EE bonds accrue interest semi-annually and pay interest at maturity

1. What are the advantages and disadvantages of selling a combination of stocks and bonds? Be sure to support your answers.
2. Suppose that you choose to sell your stocks, bonds, or a combination of both. What is your choice, and what is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.
3. Suppose that you choose to accept the job. What is your financial reasoning behind this choice? Be sure to support your answer with quantitative data.

Things to consider: If you do not want to sell your Apple investment or any part of the investment or any of the bonds, you will not be able to go to school right away and you will probably want to accept the job to earn money to help pay for school. Or, if you decide to finance your education, with your investment money, maybe you don’t accept the job, pay and concentrate on your education and get a different job after school.