Consider X Bond Fund Which Consists of the 5 Bonds

question 51

Multiple Choice

Consider X Bond Fund which consists of the 5 bonds shown below with no liabilities.
$\begin{array}{lcc}\text { Company } & \text { Current Bond Value } & \text { \# Bonds } \\\hline \text { Komko } & 980 & 120 \\\text { Hijack } & 1010 & 150 \\\text { Mitsue } & 1200 & 100 \\\text { Smitsu } & 800 & 120 \\\text { Innes } & 600 & 150\end{array}$
If initially the value of the fund was $1,000,000 and the original shares were offered to the public with a NAV of $25 per share,what is the current NAV of the fund?

• A) $25.00
• B) $27.68
• C) $25.68
• D) $28.76
• E) $26.78

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Definitions:

Market Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output that producers are willing and able to sell at that price.

Acceptable Prices

Prices that consumers feel are fair for products or services, and are willing to pay.

Total Revenues

The overall amount of money received by a firm from sales of its products or services, before any costs are deducted.

Equilibrium Point

The condition in a market where the supply of goods matches demand, leading to a stable price and quantity for the good or service.