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NEW QUESTION: 1
A. Select Plus
B. Server and Cloud Enrollment (SCE)
C. Open Value Non-Company-wide
D. Open
Answer: C
Explanation:
Explanation: The Open Value program comes with two options Non-Company-wide & Company -wide.
The Open Value Non-company-wide option offers simplified license management for more control over your IT investment and better management of software costs with the advantages of Software Assurance.
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A client requests that the network technician install additional into multiple racks. Device placement has been properly mapped out within the racks to allow for suitable air flow.
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NEW QUESTION: 4
Natalia Berg, CFA, has estimated the key rate durations for several maturities in three of her $25 million bond portfolios, as shown in Exhibit 1.
At a fixed-income conference in London, Berg hears a presentation by a university professor on the increasing use of the swap rate curve as a benchmark instead of the government bond yield curve. When Berg returns from the conference, she realizes she has left her notes from the presentation on the airplane. However, she is very interested in learning more about whether she should consider using the swap rate curve in her work.
As she tries to reconstruct what was said at the conference, she writes down two advantages to using the swap rate curve:
Statement 1: The swap rate curve typically has yield quotes at 11 maturities between 2 and 30 years. The
U.S. government bond yield curve, however, has fewer on-the-run issues trading at maturities of at least two years.
Statement 2: Swap curves across countries are more comparable than government bond curves because they reflect similar levels of credit risk.
Berg also estimates the nominal spread, Z-spread, and option-adjusted spread (OAS) for the Steigers Corporation callable bonds in Portfolio 2. The OAS is estimated from a binomial interest rate tree. The results are shown in Exhibit 2.
Berg determines that to obtain an accurate estimate of the effective duration and effective convexity of a callable bond using a binomial model, the specified change in yield (i.e., Ay) must be equal to the OAS.
Berg also observes that the current Treasury bond yield curve is upward sloping. Based on this observation, Berg forecasts that short-term interest rates will increase.
If the spot-rate curve experiences a parallel downward shift of 50 basis points:
A. Portfolio 3 will experience the best price performance.
B. all three portfolios will experience the same price performance.
C. Portfolio 1 will experience the best price performance.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The sum of a portfolios key rate durations is the effective duration of the portfolio. Each of the portfolios has an effective duration of five, so a parallel shift in the yield curve will have the same effect on each portfolio, and each will experience the same price performance. {Study Session 14, LOS 53.f)
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Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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