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NEW QUESTION: 1
Given the following spot and forward rates, how much should an investor pay for a 3-year, annual zero- coupon bond with a face value of $1,000?
The investor should pay approximately:
A. $886.
B. $724.
C. $884.
D. $720.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The yield to maturity on an N-year zero coupon bond is equivalent to the N-year spot rate.Thus, to determine the present value of the zero-coupon bond, we need to calculate the 3-year spot rate.
Using the formula: (1 + Z3)3= (1 +1f0) + (1 +1f1) + (1 +1f2)
Where Z = spot rate andnfm= The n year rate m periods from today, (1f0= the 1 year spot rate now) (1 + Z3)3= (1.035) * (1.115) * (1.1975) Z3= 1.38191/3- 1 = 0.11386, or 11.39%
Then, the value of the zero coupon bond = 1,000 / (1.1139)3= 723.62, or approximately$724.
or, using a financial calculator, N = 3, I/Y = 11.39, FV = 1,000, PMT = 0, Compute PV = 723.54, or approximately$724.
NEW QUESTION: 2
A firewall's decision to forward or reject traffic in network filtering is dependent upon which of the following?
A. Destination address
B. Port numbers
C. Source address
D. Protocol used
Answer: D
NEW QUESTION: 3
Which two steps must be completed in order to use the Debit/Credit Reconciliation feature? (Choose two.)
A. Specify a tolerance amount greater than 10% by which debit and credit transactions can be out of balance in the Manual Reconciliation (P09131) program.
B. Set up the Financial AAI GLRD.
C. Set the Reconciliation Type processing option to 1. Matching Debit Credit Reconciliation for the Manual Reconciliation (P09131) program.
D. Specify whether debits and credits are required to balance in the Manual Reconciliation (P09131) program.
Answer: C,D
Explanation:
Explanation/Reference:
Reference: https://docs.oracle.com/cd/E16582_01/doc.91/e15112/reconcilebankaccttrans.htm#EOAGA00606
NEW QUESTION: 4
Which three network addresses are reserved for private network use? (Choose three)
A. 172.31.0.0
B. 172.15.0.0
C. 10.0.0.0
D. 224.192.0.0
E. 192.162.24.0
F. 192.168.255.0
Answer: A,C,F
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