Originally Posted by
mfd
I think you're getting a little convoluted here. KFL are mandated to pay out 2% of their NAV as a dividend each quarter, paid by a combination of accrued dividends and selling holdings. They pay an 8% of NAV yield by design. I would suggest they are broadly priced to the NAV (minus a discount due to high management fees, plus any premium you assign to their ability to outperform the market).
The apparent pricing for an 8% yield is just an artifact of their dividend policy.