1. A mutual fund company has the following assets and liabilities (31/12/2019):Equities at market value160,000,000Bonds at market value60,000,000Cash40,000,000Total value assets260,000,000Liabilities30,000,000Market value of funds23,000,0000Number of share outstanding6,000,0000a. Determine the NAV of this fundb. By the end of June 2020, the value of the equity stock fell 30% and the value of the bonds rose 10%. At the same time the value of the fund´sliabilities rose by 10%. The cash position and the number of shares outstanding remained unchanged. Calculate the new NAV?

NAV net asset value can be found out by net assets value divided by outstanding shares.

A mutual fund company has the following assets and liabilities (31/12/2019): Equities at market value 160,000,000 Bonds at market value 60,000,000 Cash 40,000,000 Total value assets 260,000,000 Liabilities

A mutual fund company has the following assets and liabilities (31/12/2019): Equities at market value 160,000,000 Bonds at market value 60,000,000 Cash 40,000,000 Total value assets 260,000,000 Liabilities

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 6P: The file MutualFunds contains a data set with information for 45 mutual funds that are part of the...

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Question

1. A mutual fund company has the following assets and liabilities (31/12/2019):

Equities at market value	160,000,000
Bonds at market value	60,000,000
Cash	40,000,000
Total value assets	260,000,000
Liabilities	30,000,000
Market value of funds	23,000,0000
Number of share outstanding	6,000,0000

a. Determine the NAV of this fund
b. By the end of June 2020, the value of the equity stock fell 30% and the value of the bonds rose 10%. At the same time the value of the fund´s
liabilities rose by 10%. The cash position and the number of shares outstanding remained unchanged. Calculate the new NAV?

Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

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