A closed-end mutual fund has $300 million in assets and sells for a 10.5 percent discount to NAV. If the NAV is $10.28, what price are the fund shares?

Question

Quizplus · Accepted Answer

The NAV (Net Asset Value) is given as $10.28. A 10.5% discount to NAV means the shares are selling for 89.5% of the NAV (100% - 10.5% = 89.5%). Therefore, the price of the fund shares is $10.28 * 0.895 = $9.2006, which rounds to $9.20.

A Closed-End Mutual Fund Has $300 Million in Assets and Sells