Consider the Compliance Bond Fund that consists of the 7 bonds shown below and has no liabilities. $$\begin{array} { l c c }
\text { Campany } & \text { Current Band Value } & \# \text { Bunds } \
\hline \text { Komka } & 980 & 120 \
\text { Hijack } & 1010 & 150 \
\text { Mitsue } & 1200 & 100 \
\text { Smitsu } & 800 & 120 \
\text { Janes } & 600 & 150 \
\text { GMM } & 1000 & 150 \
\text { ATP } & 950 & 150
\end{array}$$ 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

Consider the Compliance Bond Fund that consists of the 7 bonds shown below and has no liabilities. $$\begin{array} { l c c } 
\text { Campany } & \text { Current Band Value } & \# \text { Bunds } \
\hline \text { Komka } & 980 & 120 \
\text { Hijack } & 1010 & 150 \
\text { Mitsue } & 1200 & 100 \
\text { Smitsu } & 800 & 120 \
\text { Janes } & 600 & 150 \
\text { GMM } & 1000 & 150 \
\text { ATP } & 950 & 150
\end{array}$$ 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?

Quizplus · Accepted Answer

The current value of the fund is calculated by summing the product of the current bond value and the number of bonds for each company. The total value is $2,711,000. The number of shares is $2,500,000 / $25 = 100,000 shares. The current NAV is $2,711,000 / 100,000 = $27.11.

Consider the Compliance Bond Fund That Consists of the 7