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NEW QUESTION: 1
Which of the following will have a higher reinvestment risk when compared to a 6% bond issued at par?
Assume all bonds have identical yield to maturity.
I. A coupon bearing bond with a coupon rate of 2%
II. An amortizing bond
III. A coupon bearing bond with a coupon rate of 11%
IV. A zero coupon bond
A. I and III
B. II and III
C. II, III and IV
D. I, II and IV
Answer: B
Explanation:
Explanation
Imagine a bond that provides just two cash flows: $100 in one year and $10 in 10 years. Imagine another bond that pays nothing now but $100 in 10 years. Assume that both have identical yields to maturity. Yet despite the identical YTM, the bonds are quite dissimilar. For the first bond, we face the risk that we would receive the bulk of the present value of the bond in an year's time, and while there is a small amount due in 10 years, the first payment may not find an equally attractive investment opportunity. Reinvestment risk refers to the risk that cash flows from a bond may not be investible at the yield to maturity for the bond. In such cases, bonds that have longer durations are preferable.
A coupon bearing bond with a coupon rate lower than our benchmark bond will carry a lower reinvestment risk as its cash flows are weighted more towards the end. An amortizing bond returns a part of the principle periodically, increasing reinvestment risk. A higher coupon bearing bond will have a higher reinvestment risk, and a zero coupon bond will have the least reinvestment risk.
NEW QUESTION: 2
Refer to the exhibit. The network shown in the diagram is experiencing connectivity problems.
Which of the following will correct the problems? (Choose two.)
A. Configure the IP address of Host B as 10.1.2.2.
B. Configure the masks on both hosts to be 255.255.255.224.
C. Configure the gateway on Host B as 10.1.2.254.
D. Configure the masks on both hosts to be 255.255.255.240.
E. Configure the gateway on Host A as 10.1.1.1.
F. Configure the IP address of Host A as 10.1.2.2.
Answer: A,C
NEW QUESTION: 3
___________ is a logical expression that may contain references to the values of field IDs, strings and numbers, and the status of field IDs.
A. Parameter
B. Separator
C. Predicate
D. ActionList
Answer: C
NEW QUESTION: 4
Was ist ein Merkmal der Wirbelsäulen- und Blattarchitektur?
A. Jede Verbindung zwischen Blattschaltern ermöglicht eine höhere Bandbreite.
B. Bietet eine bessere Vorhersagbarkeit für STP-blockierte Ports.
C. Es bietet eine variable Latenz
D. Jedes Gerät ist durch die gleiche Anzahl von Sprüngen getrennt
Answer: C
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