)The twenty-first century closed-end fund has GHS350 million in securities, GHS8 million in liabilities and 20 million in shares outstanding. It trades at a 10% discount from net asset value (NAV) a)What is the net asset value of the fund? b)What is the current price of the fund? c)Suggest two reasons why the fund may be trading at a discount from net asset value.
)The twenty-first century closed-end fund has GHS350 million in securities, GHS8 million in liabilities and 20 million in shares outstanding. It trades at a 10% discount from net asset value (NAV) a)What is the net asset value of the fund? b)What is the current price of the fund? c)Suggest two reasons why the fund may be trading at a discount from net asset value.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1)The twenty-first century closed-end fund has GHS350 million in securities, GHS8 million in liabilities and 20 million in shares outstanding. It trades at a 10% discount from net asset value (NAV)
a)What is the net asset value of the fund?
b)What is the current price of the fund?
c)Suggest two reasons why the fund may be trading at a discount from net asset value.
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