The Closed Fund is a closed-end investment company with a portfolio currently worth $215 million. It has liabilities of $6 million and 4 million shares outstanding.

The Closed Fund is a closed-end investment company with a portfolio currently worth $215 million. It has liabilities of $6 million and 4 million shares outstanding.

a.	What is the NAV of the fund? (Round your answer to 2 decimal places.)

NAV

$

b.	If the fund sells for $49 per share, what is its premium or discount as a percent of NAV? (Input the amount as a positive value. Round your answer to 2 decimal places.)

The fund sells at an % Discount from NAV.

Explanation: a.

NAV =	Market value of assets – Market value of liabilities
	Shares outstanding

=		$215,000,000 – $6,000,000	= $52.25
		4,000,000

b.

Premium (or discount) =		Price – NAV	=	$49 – $52.25	= –0.0622 = –6.22%
		NAV		$52.25

The fund sells at an 6.22% discount from NAV.