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NEW QUESTION: 1
All other things being equal, which one of the following bonds has the greatest duration?
A. 5-year, 8% coupon bond.
B. 15-year, 8% coupon bond.
C. 15-year, 12% coupon bond.
D. 5-year, 12% coupon bond.
Answer: B
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
Refer to the exhibit. To permit three G.729 calls, what should the bandwidth value be for the ip rsvp bandwidth command?
A. 0
B. 1
C. 2
D. 3
E. 4
Answer: B
NEW QUESTION: 3
A clinical nurse specialist is monitoring the blood glucose level of a neonate who was born to a diabetic mother.
The nurse determined that the blood glucose level is 50 mg/dL. What would be the action of the nurse?
A. Alert the physician and request an order of glucose 50%
B. Assess the cord serum glucose level
C. Monitor the neonate continuously for the next twenty-four hours
D. Feed the baby orally with 10% dextrose in water
Answer: C
Explanation:
The action of the nurse should be to monitor the neonate continuously for the next
twenty-four hours. The blood glucose level is within the normal range for neonates, so it doesn't require
any measure aside from continuously monitoring the patient for the next twenty-four hours.
