A closed-end fund starts the year with a net asset value of $23. By year-end, NAV equals $24.20. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $2.60.
a. What is the rate of return to an investor in the fund during the year?