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1. The Twenty-First Century closed-end fund has \$350 million in securities, \$8 million in liabilities, and 20 million shares outstanding. It trades at a 10 percent dis- count from net asset value (NAV).
a. What is the net asset value of the fund?
b. What is the current price of the fund?
c. Suggest two reasons why the fund may be trading at a discount from net
asset value.

2. An investor buys Go-Go Mutual Fund on January 1 at a net asset value of \$21.20. At the end of the year, the price is \$25.40. Also, the investor receives \$0.50 in dividends and \$0.35 in capital gains distributions. What is the total percent return on the beginning net asset value? (Round to two places to the right of the decimal point.)
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Ans1.

Twenty-First Century Closed-End Fund

a)

Calculation of NAV
=
=

i)

Securities
Less : Liabilities
Net Asset Value of the fund

350
8
342

ii)

Number of shares outsanding

=

20

iii)

Net...