Find the area of the trapezoid.
1 answer:
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Answer:
13.86%
Step-by-step explanation:
Data provided in the question:
Forecasted value bond portfolio one year ahead = $105 million
Expected value to be received = $10,000,000
Worth of bond portfolio today = $101 million
Now,
The Forecasted return is calculated as;
= [(Coupon + closing value - opening value) ÷ (Opening value)] × 100%
on substituting the respective values, we get
Forecasted return =
or
Forecasted return = 0.1386 × 100%
or
Forecasted return = 13.86%