Discount to nav the day after the initial public offering

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Reference no: EM131813847

Suppose you purchase 10,000 shares of a closed-end mutual fund at its initial public offering: the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets a fee of 3 percent from the offering. If this fund sells at a 5 percent discount to NAV the day after the initial public offering, what is the value of your investment? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Omit the "$" sign in your response.) Investment $

Reference no: EM131813847

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