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NEW QUESTION: 1
-- Exhibit-
-- Exhibit --
Sentence 10:It's more than just changing fluids and wipers or fixing breaks.
Which correction should be made to sentence 10?
A. replace It's with Its
B. insert a comma after wipers
C. replace than with then
D. replace breaks with brakes
E. change fixing to fixed
Answer: D
NEW QUESTION: 2
What is the main problem of the renewal of a root CA certificate?
A. It requires the authentic distribution of the new root CA certificate to all PKI participants
B. It requires issuance of the new root CA certificate
C. It requires the collection of the old root CA certificates from all the users
D. It requires key recovery of all end user keys
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Every entity (user, computer, application, network device) that has a certificate from a PKI trusts other entities with certificates issued by the same PKI because they all trust the root Certificate Authority (CA).
This trust is ensured because every entity has a copy of the root CA's public certificate.
If you want to change or renew the root CA certificate, to maintain the trust, the new certificate must be distributed to every entity that has a certificate from the PKI.
Incorrect Answers:
A: Renewing a root CA certificate does not require key recovery of all end user keys.
C: Renewing a root CA certificate does not require the collection of the old root CA certificates from all the users; the root certificates will just be invalid because they will be out-of-date.
D: Issuance of the new root CA certificate is not a problem; it is not a difficult procedure. The distribution of the certificate to all PKI participants is more of a challenge.
NEW QUESTION: 3
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, III and IV
B. II and III
C. I and III
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.
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