A closed-end fund starts the year with a net asset value (NAV) of $15.50. By year-end, NAV increases to $16.00. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 5% discount to NAV. The fund paid year-end distributions of $2.00. What is the rate of return to an investor in the fund during the year?

A closed-end fund starts the year with a net asset value (NAV) of $15.50. By year-end, NAV increases to $16.00. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 5% discount to NAV. The fund paid year-end distributions of $2.00. What is the rate of return to an investor in the fund during the year?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...

See similar textbooks

Similar questions

Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value of its assets and liabilities are $7 million and $4 million, respectively. The duration of the assets is 11 years and the duration of the liabilities is 27 years. (a) Suppose that the interest rate decreases to 5.45%. Estimate the relative changes in the fund's assets and liabilities. Express yours answers as percentages, to the nearest basis point. Relative Change in Assets % Relative Change in Liabilities % (b) Using your rounded answers from (a), estimate the absolute changes in the fund's assets and liabilities. Express your answers in millions of dollars, to the nearest thousand. Absolute Change in Assets $ million Absolute Change in Liabilities s $ million (c) The fund's net worth is defined as the difference between its assets and liabilities. Using your answers from (b), estimate the relative change in the fund's net worth. Express your answer as a percent, to the nearest basis…
Bi-monthly deposits of 16,000 are made to accumulate a fund at the end of 8 years. Round off final answers for leff to 4 decimal places and final answers for future fund value F to two decimal figures. a. What would be the value of the fund after the last deposit if the nominal interest rate is 16.4% compounded monthly? b. What is the bi-monthly effective interest rate if the nominal interest rate is 12.1% compounded monthly? Answer in % with 4 decimal places. c. What would be the value of the fund after the last deposit if the nominal interest rate is 19.8% compounded quarterly? d. What is the bi-monthly effective interest rate if the nominal interest rate is 19.5% compounded quarterly? Answer in % with 4 decimal places. e. What is the bi-monthly effective interest rate if the nominal interest rate is 14.6% compounded annually? Answer in % with 4 decimal places. f. What would be the value of the fund after the last deposit if the nominal interest rate is 15.7% compounded…
hello any & all help is greatly appreciated! thanks in advance :)
You invested $11,500 at the end of each quarter for 6 years in an investment fund. At the end of year 6, if the balance in the fund was $291,000, what was the nominal interest rate compounded quarterly? 0.00 % Round to two decimal places SUBMIT QUESTION SU SAVE PROGRESS F
Solve manually using formulas. A fund earning 8% annual effective rate of interest is being accumulated with payments of500 at the beginning of each year for 20 years. Find the maximum number of withdrawalsof 1000 that can be made at the end of every year under the condition that once awithdrawal is made, withdrawals must continue through the end of the 20-year period.
Only on Excel. You purchased $10,000 worth of Chan’s Midcap Value Fund at $23.5 NAV. The fund is a no load fund. During the past 12 month, the fund distributed $0.45 in dividends and the current NAV is $25.35. What is your return last year? Please show how to solve in excel..
In the information given int he following case, determine the number of years that the given oridinay annuity cash flows must continue inorder to provide the rate of return on the intial amount. Initial amount: $26,800 Annual Cash Flow: $6,561 Rate of Return: 6%
Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly and produces $32,000 at the end of 2.5 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)
What equal series of payments must be paid into a sinking fund in order toaccumulate each given amount?(a) $1,700 in 10 years at 8% compounded semiannually when payments aresemiannual.(b) $9,000 in 6 years at 3% compounded quarterly when payments arc quarterly.(c) $4,000 in 2 years at 12% compounded monthly when payments are monthly.
Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. $244.24 per month $281.72 per month $220.71 per month $286.72 per month
How to answer this
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $ please round it to the nearest cent