Calculate the Net Asset Value and Number of Shares Purchased

question 66

Short Answer

Calculate the net asset value and number of shares purchased for the fund (round shares to thousandths): $$\begin{array} { l l l l l l l } \text { Total } & \text { Total } & \text { Shares } & \text { Net Asset } & \text { Offer } & \text { Total } & \text { Shares } \\\text { Assets } & \text { Liab. } & \text { Outstanding } & \underline { \text { Value(NAV) } } & \text { Price } & \underline { \text { Investment } } & \underline { \text { Purchased } } \\\$ 20,000,000 & \$ 800,000 & 1,500,000 & &NL &\$40,000 &\end{array}$$

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Definitions:

Yield To Maturity

The expected total yield on a bond when held until the expiration of its term.

Coupon Rate

The yearly rate of return on a bond, shown as a percentage of its nominal worth.

Discount Rate

The interest rate that the Federal Reserve charges banks for short-term loans, or a rate used to discount future cash flows to present value.

Par Value

The face value of a bond or stock, typically the amount paid at maturity for bonds and the nominal value for stocks.