A mutual fund has the following assets: 1 m. shares of Marriott stock (price=$140), 1 m. shares of Southwest Airlines stock (p=60), 2 m. shares of GM stock (p=35), and $150 m. Microsoft bonds (p=100, MD=5). There are 20 m. shares outstanding of this balanced mutual fund. (Show your work for full credit)

1. What is the NAV of the fund?______
2. If the Microsoft bonds spread rises by 150 bp, what is the new NAV?___