Saving bonds EE I E
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.
•Discuss each type of savings bond.
•Discuss which bond receives the best coupon rate.
•Which bond would you invest in, given the TVM concept?
•Based on your answer from the previous question, what does that say about your view point on the time value of money?
•Describe the advantage of investing in a savings bond. For example, what could be done with the additional gained revenue?
•Describe the disadvantages of investing in a savings bond. For example, what could be done with the money not invested?