Consider the Compliance Bond Fund That Consists of the 7

question 39

Multiple Choice

Consider the Compliance Bond Fund that consists of the 7 bonds shown below and has no liabilities.
$\begin{array}{lcc}\text { Company } & \text { Current Bond Value } & \text { \# Bonds } \\\hline \text { Komko } & 980 & 120 \\\text { Hijack } & 1010 & 150 \\\text { Mitsue } & 1200 & 100 \\\text { Smitsu } & 800 & 120 \\\text { Jones } & 600 & 150 \\\text { GMM } & 1000 & 150 \\\text { ATP } & 950 & 150\end{array}$
If initially the value of the fund was $2,500,000 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) $27.11
• B) $25.00
• C) $26.11
• D) $21.67
• E) $26.27

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Definitions:

Per Unit

Refers to the measurement or cost associated with one single unit of product or service.

Labor Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved.

Labor Rate Variance

A financial measure that calculates the difference between the actual labor costs and the expected labor costs based on standard rates.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on the standard labor rate.