Final answer:
The closed-end mutual fund is trading at a premium of $0.20 per share, which is approximately 0.746% above its net asset value (NAV) of $26.80.
Step-by-step explanation:
If you are considering the purchase of shares in a closed-end mutual fund and you've noticed that the net asset value (NAV) is $26.80 while the latest close is $27.00, this fund is trading at a premium. The premium is calculated by subtracting the NAV from the closing price. In this case:
Premium = Latest Close - NAV
Premium = $27.00 - $26.80
Premium = $0.20 per share
The fund is trading at a premium of $0.20 per share. The percentage of the premium can also be calculated by taking the premium per share and dividing it by the NAV, then multiplying by 100 to convert it to a percentage:
Percentage of Premium = ($0.20 / $26.80) × 100
Percentage of Premium = 0.746% approximately