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What is the net asset value of the fund?

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The New Pioneer closed-end fund has 520 million in securities, 5 million in liabilities and 10 million shares outstanding. It trades at a 5% premium above its net asset value (NAV):
? (a) What is the NAV of the fund?
? (b) What is the current price of the fund?
? (c) Why might a fund trade at a premium above its NAV?

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The expert examines the net asset value of a fund.

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Hi there,

Net Asset Value (NAV) is calculated by the following formula:
NAV = Value of investment - liabilities / # of shares outstanding
Thus, the answer in for question (a) is:
NAV = ...

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