You Purchase a Closed-End Fund at Its Initial Public Offering

question 19

Multiple Choice

You purchase a closed-end fund at its initial public offering. The initial offering price is $30 per share. The fund promoter receives a 7 percent fee from the offering, and the fund sells at a 9 percent discount to NAV the day after the offering. What is the value of your investment per share?

• A) $25.39
• B) $27.90
• C) $26.95
• D) $27.30
• E) $26.34

---

Definitions:

Depression

A psychiatric disorder manifesting in persistent feelings of sadness, hopelessness, and lack of interest or pleasure in nearly all activities.

Prenatal Care Classes

Educational courses for expectant parents focusing on pregnancy, childbirth, postnatal care, and early parenthood, aiming to prepare them for the arrival of a new baby.

Pregnant

The state of carrying a developing fetus within the female uterus.

Labor

The process of childbirth, especially the period from the start of contractions to delivery, or the physical and mental effort involved in working.