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A company has a callable issue outstanding. If the volatility of interest rates increases, all of the following statements are true EXCEPT
A. bond investors may lose the difference between the intrinsic value of the bond and its call price.
B. the value of the callable bond increases.
C. the probability of call increases.
Answer: B
Explanation:
Value of a callable bond = Value of equivalent straight bond - Call option.
Option value increases when interest rate volatility increases. Since investors have written a call option, when the option value is subtracted, value of a callable bond decreases.
NEW QUESTION: 2
Users are reporting that external web pages load slowly. The network administrator determines that the Internet connection is saturated. Which of the following is BEST used to decrease the impact of web surfing?
A. Traffic analyzer
B. Caching
C. Port filtering
D. Load balancing
Answer: B
Explanation:
In computer science, acacheis a component that transparently stores data so that future requests for that data can be served faster. The data that is stored within a cache might bevalues that have been computed earlier or duplicates of original values that are stored elsewhere. If requested data is contained in the cache (cache hit), this request can be served by simply reading the cache, which is comparatively faster.
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Some work schedule rules include four hours work on Fridays and half day holidays. Absences and quota deduction are calculated in days. How do you reduce the daily quota proportionally for an absence on one of these days? (Choose three.)
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B. Set the counting rules to include 50% quota multiplier for days.
C. Set the counting rules to query different conditions for the current day.
D. Set the deduction rules to query the different holiday classes.
E. Set the counting rules to query the different holiday classes.
Answer: B,C,E
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B. Verwendung der Berichts-Berichts-Schnittstelle
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Answer: A
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