Mary Canfield purchased the New Dimensions bond fund. While this fund doesn’t ch
ID: 2776687 • Letter: M
Question
Mary Canfield purchased the New Dimensions bond fund. While this fund doesn’t charge a front-end load, it does charge a contingent deferred sales load of 2.5 percent for any withdrawals in the first five years. Mary withdraws $6,500 during the second year.
How much is the contingent deferred sales load? (Round your answer to 2 decimal places.)
Mary Canfield purchased the New Dimensions bond fund. While this fund doesn’t charge a front-end load, it does charge a contingent deferred sales load of 2.5 percent for any withdrawals in the first five years. Mary withdraws $6,500 during the second year.
Explanation / Answer
Contingent deferred sales load is $6500 * 0.025 = 162.5.