标题: close-end fund question [打印本页]

---

作者: atate2007    时间: 2011-7-11 17:48     标题: close-end fund question

The net asset value of a closed-end mutual fund is $11.20, and the share price is $10.00. The discount or premium is closest to:

The answer is: 10.7% discount.

(SP - NAV) / NAV =

(10.00 - 11.20) / 11.20 = −0.107


why is this a discount instead of premium? and why can't I calculate as (NAV-SP)/SP?

totally confused..someone help?? thx!

---

作者: mnieman    时间: 2011-7-11 17:48

Its all relative to the nav... it costs 10 but the value of the assets is 11.2 so thats why its trading at a discount...

You use nav in the denominator because you are trying to figure out what % of the nav the premium or discount is.

---

作者: dontknow1987    时间: 2011-7-11 17:48

got it..thanks for explanation!

---

欢迎光临 CFA论坛 (http://forum.theanalystspace.com/)

Powered by Discuz! 7.2