Question One:

A$)$ Open$-$ end fund A has $100$ shares of ABC valued at SSP $100$ each and $50$ bonds of XYZ valued at SSP $50$ each. Closed$-$ end Fund B has $75$ shares of ABC and $100$ bonds of XYZ$.$ Both Funds have $100$ shares outstanding.

$1)$ Determine the net Asset value $($NAV$)$ of each Fund.

Assume another $100$ shares of ABC value SSP $100$ are added to fund A$.$

$2)$ Determine the NAV of the Fund if the underlying share price remain unchanged.

$3)$ If the price of ABC rises to SSP $105$ and price of XYZ bonds falls to SSP $45.$

How does this affect the NAV of both Funds?

B$)$ Briefly describe the following:

$1)$ A defined $$ benefit pension plan.

$2)$ A defined$-$ Contribution plan. And explain how it differs from a defined $$ benefit pension plan