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A. bond investors may lose the difference between the intrinsic value of the bond and its call price.
B. the probability of call increases.
C. the value of the callable bond increases.
Answer: C
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. Port filtering
B. Caching
C. Traffic analyzer
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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D. Set the counting rules to query the different holiday classes.
E. Set the counting rules to include 50% quota multiplier for hours.
Answer: A,B,D
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B. Massenumkehr
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