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The Closed-End Fund Discount Quandary

If a CEF is selling at $4 which a 20% discount to NAV of $5 and paying a 20% dividend of the NAV, and all of it is Return of Capital, then the discount is forced to shrink. In 5 years almost all of the NAV will have been paid out and the owner will have been paid out what he put in (the $4 market price) plus much of the $1 discount.