F
I
N390-1301B
Ph1 Individual Project 1
Professor Thompson
Bonds: 1-8 of 8
Serial # |
Series |
Denom |
Issue |
Next |
Final |
Issue |
Interest |
Interest |
Value |
Note |
|
||||||||||||||||||||||||||||||||||||||||||||||||
NA |
I |
$5,000 |
02/2013 |
06/2013 |
02/2043 |
$5,000.00 |
$0.00 |
1.76% |
$5,000.00 |
NE |
|||||||||||||||||||||||||||||||||||||||||||||||||
$50 0 |
$500 .00 |
$500.00 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$100 |
$100.00 |
$100.00 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$50 |
$50.00 |
$50.00 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EE |
$2,500.00 |
0.20% |
$2,500.00 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$250.00 |
$250.00 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$25.00 |
$25.00 |
CALCULATE ANOTHER BOND
Using the following website,
http://www.treasurydirect.gov/BC/SBCPrice
calculate the price of the following savings bonds in the each of the following denominational amounts: EE bond, I bond, E bond and savings note ($50, $100, $500 and $5000), and construct a table showing your answers. In addition, please answer the following questions:
· Discuss each type of savings bonds in terms of risk, payout, growth..
· Discuss which bond receives the potential best coupon rate. Why is this the case?
· Given TVM concept, which bond would you invest in?
· Based on your answer from the previous question, what does that say about your view point on the time value of money?
· Describe the advantages and disadvantages of investing in a savings bond.
· Describe the disadvantages of investing in a savings bond.
· What is the opportunity cost of investing or not investing n a savings bond?