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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. II and III
B. II, III and IV
C. I, II and IV
D. I and III
Answer: A
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
Which tuning tool recommends how to optimize materialized views so that these views can take advantage of the general query rewrite feature?
A. SQL Access Advisor
B. SQL Tuning Advisor
C. Segment Advisor
D. Undo Advisor
Answer: A

NEW QUESTION: 3
Which advantage of using LDAP over AD is true?
A. LDAP does not require ISE lo join the AD domain
B. LDAP provides for faster authentication
C. LDAP can be configured to use a primary and secondary server, whereas AD cannot
D. LDAP allows for granular policy control whereas AD does not
E. The closest LDAP servers are used for authentication
Answer: C