A mutual fund with an 8% load and a 1% redemption fee carries a current quote of $6.25 - $6.79. If an investor has tendered his shares for redemption on that basis, the per share price he will receive is approximately:
A)$6.79
B)$6.72
C)$6.25
D)$6.19

Question

Quizplus · Accepted Answer

$6.19. The fund has a redemption fee of 1%. This is about 6 cents based upon the bid price. Subtracting that from the $6.25 bid results in $6.19.

A Mutual Fund with an 8% Load and a 1