The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has

Question:

The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 million and 5 million shares outstanding.

a. What is the NAV of the fund?

b. If the fund sells for $36 per share, what is its premium or discount as a percent of net asset value?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...