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Suppose you purchase 15,500 shares of a closed-end mutual fund at its initial public offering; the offer price is $10 per share. The offering prospectus
Suppose you purchase 15,500 shares of a closed-end mutual fund at its initial public offering; the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets a fee of 5 percent from the offering.
If this fund sells at a 9 percent discount to NAV the day after the initial public offering, what is the value of your investment?
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