Can bids be placed for rates higher than the maximum rate?
No, they are capped at the maximum rate, which is calculated on the day of the applicable auction. If that auction fails, the maximum rate determined on that date remains in effect until the next scheduled auction. Q: What impact do the auction failures have on common shareholders and the Fund’s leverage? If an auction fails, the Fund’s cost of leverage may increase and impact the income available for distribution to common shareholders. The Fund has been closely monitoring the impact of the auction failures on the cost of financing the Fund’s leverage. Q: The Fund has voluntarily redeemed 920 shares of its 2640 outstanding Preferred Shares. Does the Fund anticipate redeeming additional Preferred Shares? The Fund would expect to redeem additional shares of Preferred Shares to the extent necessary for the Fund to maintain an “asset coverage” of at least 200% for the Preferred Shares, after payment of all dividends. “Asset coverage” for this purpose means the ratio of the net assets of t
