Question

The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $430 million. It has liabilities of $8 million and 10 million shares outstanding. If the fund sells for $40 a share, what is its premium or discount as a percent of NAV

Answer 1

5.21%

Step-by-step explanation:

The Stone Harbor Fund

NAV= Investment in portfolio - liabilities/ Numbers of share outstanding

(430-8)/10

=422/10

=$42.2

Discount will be : $42.2 -40 shares

=$2.2

Hence:

$2.2/$42.2

=5.21%

Therefore the premium or discount as a percent of NAV will be 5.21%