I don't know if BIF will begin trading at a premium like the Cornerstone funds, but I'm expecting to see the discount continue to decrease from here. I currently own shares in BIF and will be watching the fund over the next few months. I will probably sell once the discount stops decreasing, or if it starts trading at a premium, once the premium stops increasing.
The Boulder Growth & Income Fund (NYSE:BIF) has announced that it is going ahead with its proposed $0.10 per month distribution policy. Since this policy was proposed in February the fund's discount has decreased substantially, probably in anticipation that once potential investors see the nearly 15% "yield" they will drive up the share price even higher. The announcement clearly states that only a small portion of the distribution will consist of income earned by the fund, but that fact has not stopped investors from bidding up the share prices of other funds.