Sioux Financial Corp. has forecasted its bond portfolio value for one year ahead to be P105 million. In one year, it expects to receive P10 million in coupon payments. The bond portfolio today is worth P101 million. What is the forecasted one-year return of this bond portfolio? Indicate your final answer in decimal form with 4 decimal places (e.g. 10.11% should be entered as 0.1011).
Sioux Financial Corp. has forecasted its bond portfolio value for one year ahead to be P105 million. In one year, it expects to receive P10 million in coupon payments. The bond portfolio today is worth P101 million. What is the forecasted one-year return of this bond portfolio? Indicate your final answer in decimal form with 4 decimal places (e.g. 10.11% should be entered as 0.1011).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.Sioux Financial Corp. has
Indicate your final answer in decimal form with 4 decimal places (e.g. 10.11% should be entered as 0.1011).
2. A firm has an outstanding bond with a P1,000 par value that is convertible at P38 per share of common stock. The bond’s conversion ratio is:
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