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A mutual fund company has the following assets and liabilities (31/12/2019): Equities at market value 160,000,000 Bonds at market value 60,000,000 Cash 40,000,000 Total value assets 260,000,000 Liabilities

A mutual fund company has the following assets and liabilities (31/12/2019): Equities at market value 160,000,000 Bonds at market value 60,000,000 Cash 40,000,000 Total value assets 260,000,000 Liabilities

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. A mutual fund company has the following assets and liabilities (31/12/2019):

Equities at market value

160,000,000

Bonds at market value

60,000,000

Cash

40,000,000

Total value assets

260,000,000

Liabilities

30,000,000

Market value of funds

23,000,0000

Number of share outstanding

6,000,0000

a. Determine the NAV of this fund
b. By the end of June 2020, the value of the equity stock fell 30% and the value of the bonds rose 10%. At the same time the value of the fund´s
liabilities rose by 10%. The cash position and the number of shares outstanding remained unchanged. Calculate the new NAV?

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