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NEW QUESTION: 1
From the viewpoint of the investor, which of the following securities provides the east risk?
A. Income bond.
B. Mortgage bond.
C. Subordinated debenture.
D. Debentures.
Answer: B
Explanation:
A mortgage bond is secured with specific fixed assets, usually real property. Thus, under the rights enumerated in the bond indenture, creditors will be able to receive payments from liquidation of the property in case of default. In a bankruptcy proceeding, these amounts are paid before any transfers are made to other creditors, including those preferences. Hence, mortgage bonds are less risky than the others listed.

NEW QUESTION: 2
Which two control-plane subinterfaces can be found in IOS-based routers that support CPPr? (Choose two.)
A. rate limiting
B. CoPP
C. port filtering
D. host
E. transit
Answer: A,C
Explanation:
Explanation
CPPr includes the following additional control plane protection features:
The port-filtering feature provides for policing/dropping of packets going to closed or nonlistening TCP/UDP ports
*Queue thresholding limits the number of packets for a specified protocol that will be allowed in the control plane IP input queue

NEW QUESTION: 3
Consider an annual coupon bond with the following characteristics:
For a 75 basis point change in interest rates, the bond's duration is:
A. 8.17 years.
B. 5.80 years.
C. 5.09 years.
D. 8.79 years.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Since the bond has an embedded option, we will use the formula for effective duration.(This formula is the same as the formula for modified duration, except that the "upper price bound" is replaced by the call price.) Thus, we only need to calculate the price if the yield increases 75 basis points, or 0.75%.
Price if yield increases 0.75%: FV =100, I/Y =7.25= 6.50 + 0.75, N =12, PMT =6.5, Compute PV = 94.12 The formula for effective

jjoachim_SS15_1_C_j_duration
Where:
V-
= Call price/price ceiling
V+
= estimated price if yield increases by a given amount,ꢀy
V0
= initial observed bond price
y
ꢀ
= change in required yield, in decimal form
Here,effective duration = (101.75 - 94.12) / (2 * 100 * 0.0075) = 7.63 / 1.5 =5.09 years.

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