A Closed-End Mutual Fund

question 98

Multiple Choice

A closed-end mutual fund

• A)invests in bonds of a particular maturity,when they mature,the fund closes.
• B)trades on a stock exchange just like a publicly traded corporation.
• C)always trades at Net Asset Value.
• D)all of the options

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Definitions:

Borrowed

Refers to funds or resources obtained temporarily from another party, usually with the promise of repayment plus interest.

Final Payment

The last installment paid in a series of payments, concluding the payment obligation under a financial agreement.

Interest Annually

A method where interest is calculated once every year and added to the principal sum, affecting the total amount of interest earned or paid over the life of the loan or investment.

Annual Rate

The interest rate over a year's time, often used in financial contexts to describe the yield of an investment or the cost of a loan.