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NEW QUESTION: 1
William Rogers, a fixed-income portfolio manager, needs to eliminate a large cash position in his portfolio.
He would like to purchase some corporate bonds. Two bonds that he is evaluating are shown in Exhibit I.
These two bonds are from the same issuer, and the current call price for the callable bond is 100. Assume that the issuer will call if the bond price exceeds the call price.
Rogers is also concerned about increases in interest rates and is considering the purchase of a putable bond. He ants to determine how assumed increases or decreases in interest rate volatility affect the value of the straight bonds and bonds with embedded options. After Rogers performs some analysis, he and his supervisor, Sigourney Walters, discuss the relative price movement between the two bonds in Exhibit 1 when interest rates change significantly During the discussions, Rogers makes the following statements:
Statement 1: If the volatility of interest rates decreases, the value of the callable bond will increase.
Statement 2: The noncallable bond will not be affected by a change in the volatility or level of interest rates.
Statement 3: When interest rates decrease, the value of the noncallable bond increases by more than the callable bond.
Statement4: If the volatility of interest rates increases, the value of the putable bond will increase.
Walters mentors Rogers on bond concepts and then asks him to consider the pricing of a third bond. The third bond has five years to maturity, a 6% annual coupon, and pays interest semiannually. The bond is both callable and putable at 100 at any time. Walters indicates that the holders of the bond's embedded options will exercise if the option is in-the-money.
Rogers obtained the prices shown in Exhibit b using software that generates an interest rate lattice. He uses his software to generate the interest rate lattice shown in Exhibit 2.
Exhibit 2: Interest Rate Lattice (Annualized Interest Rates)
Evaluate Rogers' statements.
A. Only Statement 2 is correct.
B. Both statements are incorrect.
C. Only Statement 4 is correct.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Statement 2 is incorrect because the noncallal in the level of interest rates.
Statement 4 is correct because higher interest embedded put option and increase the value i LOS 54.0 >lc bond value will be affected by a change rate volatility will increase the value of the >f the puttable bond.
(Study Session 14,
NEW QUESTION: 2
A pharmaceutical company was recently awarded a 20 year patent for a new medicine it has developed. Which of the following results could be a consequence of this patent? (Select all that apply.)
A. Pharmaceutical companies will be incentivized to develop new medicines in the future.
B. The high price of the medicine will result in insufficient demand.
C. The cost to produce the medicine will remain high after the patent expires.
D. The company will drive its competitors out of the pharmaceutical industry, limiting innovation.
E. The pharmaceutical company will charge higher prices for the drug.
Answer: A,E
NEW QUESTION: 3
あなたは単一のユーザー定義のデータベースロールnamedBillingUsersが含まれているContosoという名前のMicrosoft SQL Serverデータベースを管理します。
Contoso社のすべてのオブジェクトがdboスキーマにあります。
あなたはBillingUsersにContoso内のすべてのストアドプロシージャのEXECUTE権限を付与する必要があります。
どのTransact-SQLのステートメントは使用すべきか。
A. GRANT EXECUTE ON INFORMATION_SCHEMA.ROUTINES TO BillingUsers
B. GRANT EXECUTE ON Schema::dbo TO BillingUsers
C. GRANT EXECUTE ON Schema::Contoso TO BillingUsers
D. EXEC sp_addrolemember 'db_procexecutor', 'BillingUsers'
Answer: B
Explanation:
Explanation
If you want to do it on schema level:
GRANT EXECUTE ON SCHEMA ::dbo TO
Incorrect:
Not B: DB_Executor is none of the predefined SQL Server database role
Not C, Not D: Incorrect schema.
References:
http://www.sqlservercentral.com/articles/Permissions/107472/
NEW QUESTION: 4
Which statement is true about Java byte code?
A. It can run on any platform.
B. It can run on any platform only if it was compiled for that platform.
C. It can run on any platform that has a Java compiler.
D. It can run on any platform only if that platform has both the Java Runtime Environment and a Java compiler.
E. It can run on any platform that has the Java Runtime Environment.
Answer: E
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