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NEW QUESTION: 1
All other things being equal, which one of the following bonds has the greatest duration?
A. 15-year, 8% coupon bond.
B. 5-year, 8% coupon bond.
C. 15-year, 12% coupon bond.
D. 5-year, 12% coupon bond.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
If bonds are identical except for maturity and coupon, the one with the longest maturity and lowest coupon will have the greatest duration. The rationale for this is similar to that for price volatility. Duration is approximately equal to the point in years where the investor receives half of the present value of the bond's cash flows. Therefore, the later the cash flows are received, the greater the duration.
The relationship of maturity to duration is direct - the longer the time to maturity, the greater the duration. A longer-term bond pays its cash flows later than a shorter-term bond, increasing the duration. Here, one of the 15-year bonds will have the greatest duration.
The relationship of coupon to duration is indirect - the lower the coupon rate, the greater the duration. A lower coupon bond pays lower annual cash flows than a higher-coupon bond and thus has less influence on duration. Here, the 15-year bond with the lowest coupon (8.00%) will have the greatest duration.

NEW QUESTION: 2
Performance on a new private cloud deployment is not meeting expectations. An engineer has determined the virtualization host is experiencing high ready/wait times. VMs with the following configurations and metrics currently reside on the host:

Which of the following troubleshooting choices would MOST likely be used to bring the high ready/wait times to meet the expected baseline?
A. Decrease the CPU count for VM1.
B. Decrease the memory size for VM3.
C. Increase the memory size for VM2.
D. Increase the CPU count for VM4.
Answer: C

NEW QUESTION: 3
Which of the following are some of the parts of a project plan?
Each correct answer represents a complete solution. Choose all that apply.
A. Risk analysis
B. Team members list
C. Project schedule
D. Risk identification
Answer: B,C,D