Consider the Compliance Bond Fund that consists of the 7 bonds shown below and has no liabilities.
$\begin{array}{lcc}
\text { Company } & \text { Current Bond Value } & \text { \# Bonds } \
\hline \text { Komko } & 980 & 120 \
\text { Hijack } & 1010 & 150 \
\text { Mitsue } & 1200 & 100 \
\text { Smitsu } & 800 & 120 \
\text { Jones } & 600 & 150 \
\text { GMM } & 1000 & 150 \
\text { ATP } & 950 & 150
\end{array}$
If initially the value of the fund was $2,500,000 and the original shares were offered to the public with a NAV of $25 per share,what is the current NAV of the fund?

Question

Quizplus · Accepted Answer

The current NAV is calculated by dividing the total current value of the bonds by the number of shares. The total current value is $1,176,000 + $1,515,000 + $1,200,000 + $960,000 + $900,000 + $1,500,000 + $1,425,000 = $8,676,000. The number of shares is $2,500,000 / $25 = 100,000. Therefore, the current NAV is $8,676,000 / 100,000 = $86.76.

Consider the Compliance Bond Fund That Consists of the 7