The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $310 million. It has liabilities of $3 million and 10 million shares outstanding. If the fund sells for $28 a share, what is its premium or discount as a percent of NAV

8.79%

Explanation:

The premium or discount as a percent of NAV will be calculated thus:

NAV will be calculated as:

= (Market value of portfolio - liabilities ) / shares outstanding

= ($310 million - $3million) ÷ 10 million

= $30.7 per share.

Then, the calculation for the discount percent will be:

= (selling price - NAV) / NAV

= ($28 - $30.7) / $30.7

= ($-2.7) / $30.7

= (0.0879)

= 8.79%

Therefore, NAV is trading at discount of 8.79%

0.59 ± 0.081 = (0.671, 0.509)  
Explanation: 
The sample proportion, p = 118/200 = 0.59 
The test statistic at 98% confidence interval is given by : 
p + z*Sqrt(p(1-p)/n) ; p - z*Sqrt(p(1-p)/n) 
z at 98% C.I. is 2.33 
Therefore, 0.59 + 2.33 * sqrt(0.59*(1-0.59)/200) and 0.59 + 2.33 * sqrt(0.59*
(1-0.59)/200)
 =0.59 + 0.081 and 0.59 - 0.081
 =0.671, 0.509