ABC Fund

$42\mathrm{.}12$

$2\mathrm{.}97$

$7\mathrm{.}59\%$

Prev Close: $39\mathrm{.}15$ Net Assets$*$: $9\mathrm{.}21$ M

YTD Return$*$: $4\mathrm{.}21\%$ Yield$*$: $2\mathrm{.}55\%$

Suppose the above fund charges a $7\%$ front$-$end load, what is the offer price and the value of your initial net investment if you invest $$10,000?$

Question $7$Answer

a$.$

offer price $=45\mathrm{.}29$; initial net investment $=10000$

b$.$

offer price $=39\mathrm{.}36$; initial net investment $=10700\mathrm{.}00$

c$.$

offer price $=42\mathrm{.}12$; initial net investment $=10000$

d$.$

offer price $=39\mathrm{.}36$; initial net investment $=9300\mathrm{.}00$

e$.$

offer price $=45\mathrm{.}29$; initial net investment $=9300\mathrm{.}00$