Question

pouy order at D) $62.50 957.50 C) $59.75 ) Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in 2 months. What is the annual percentage rate of return for this investment? A) 12 % 45) B) 2.04% C) 12.24% D) 12.89% The Stone Harbor Fund is a closed-end investment company with a portfolio currently orth $300 million. It has liabilities of $5 million and 9 million shares outstanding. If e fund sells for $30 a share, what is its premium or discount as a percent of NAV? A) 9.26% premium C) 8.47% premium 46 B) 9.26% discount D) 8.47% discount

Answer 1

Ans 1
	buy price	9800
	sale price	10000
	Profit	200
	Return	2.04%
	annual return =	12.89%
	=(1+2.04%)^6-1
	therefore answer = option D			12.89%
Ans 2
	Asset=	300	mil
	liabilities	5	mil
	Net asset	295	mil
	number of share	9	mil
	value per share	32.78
	current value =	30
	discount	(2.78)
	discount %	-9.26%
	therefore answer =	option B) 9.26%