A closed-end fund with an NAV of $9.60 and a market price of $10.25 is selling at a premium of 6.8%.

Name: A closed-end fund with an NAV of $9.60 and a market price of $10.25 is selling at a premium of 6.8%.
Brand: Quizplus
Rating: 4.7 (56 reviews)

Question

Quizplus · Accepted Answer

The premium can be calculated as (market price - NAV) / NAV * 100%. Plugging in the given values, we get (10.25 - 9.60) / 9.60 * 100% = 6.77%, which rounds up to 6.8%. Therefore, the statement is true.

A Closed-End Fund with an NAV of $9