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What makes some bonds sell at a premium while others sell at a discount?
Answered By Editor
It must be clear that the share price is
subject to the factors like supply and demand
and closed-end funds that are rarely traded
at their net-asset value. In other words, the
share price does not equal to the value of
stock holdings in the fund. It is when they
are new that the close-end fund typically
trade at premium. Few months after, it will
already depend on the popularity where
discounts appear.
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