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NEW QUESTION: 1
The arbitrage free valuation approach uses the __________ on a __________ to discount each cash flow of a bond.
A. spot rates; zero coupon bond of equal maturity
B. weighted discount rate; bond of equal maturity
C. individual discount rates; premium bond
Answer: A
Explanation:
The arbitrage free valuation approach uses the spot rates on a zero coupon bond of equal maturity to discount each cash flow of a bond.
NEW QUESTION: 2
A customer with no in-house IT supports needs to implement a solution that includes a relational database, industry leading security, standards based Internet technology, networking and storage management capabilities.
Which operating system will satisfy the customer's requirement?
A. AIX
B. Linux
C. Windows
D. IBM i
Answer: D
Explanation:
Explanation
Reference
http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=OC
& subtype=NA&htmlfid=897/ENUS5770-SS1
NEW QUESTION: 3
次のうち、侵入テスト後の最も関連性の高いリスク指標はどれですか？
A. リモートエクスプロイト攻撃に対して脆弱なホストのリスト
B. 成功した脆弱性の悪用の詳細
C. 脆弱性の詳細と推奨される修復
D. 脆弱性を特定してスキャンしたネットワーク上のターゲットシステムのリスト
Answer: C
NEW QUESTION: 4
Jackie Gold owned a bond that had a Modified duration of 19.400. If the bond had a coupon of
19.00 %, and a yield to maturity of 8.50 %, then what is the change in bond price given a change in yield of - 290 basis points?
A. -14.741%
B. 33.756%
C. 56.260%
Answer: C
Explanation:
Candidates beware of extraneous information and the possible trap set for you! Modified duration estimates the percentage change in bond price with a change in yield and is a very simple computation. You do not need to make the Macaulay adjustment (i.e. (Macaulay duration) - (1+YTM/2)) since the modified duration is already provided. This calculation is very straight forward however, do not forget to adjust for the " - "sign at the beginning of the formula. Just remember that bond prices and interest rates move in an inverse manner. Consequently as interest rates decrease, bond prices decrease
(and vice versa). The solution follows: The formula for a bond with a Modified duration is: % dP = -
Modified Duration * di dP/P * 100 = - Dmod * di Where dP = change in price for the bond, - Dmod = the modified duration for the bond, di = the yield change in basis points divided by 100, P = beginning price for the bond % dP = -19.400 * -2.90 = 56.260%