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NEW QUESTION: 1
Duration of a bond normally increases with an increase in:
A. coupon rate.
B. time to maturity.
C. par value.
D. yield to maturity.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Duration is directly related to maturity and inversely related to the coupon rate and yield to maturity (YTM).
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 longer the time to maturity, the greater the duration (and vice versa). A longer-term bond pays its cash flows later than a shorter-term bond, increasing the duration. The lower the coupon rate, the greater the duration (and vice versa). A lower coupon bond pays lower annual cash flows than a higher-coupon bond and thus has less influence on duration. The lower the YTM, the higher the duration. This is because the bond's price (or present value) is inversely related to interest rates. When market yields fall, the value (or cash flow) of a bond increases without increasing the time to maturity.
Consider the purchase of an existing bond selling for $1,150. This bond has 28 years to maturity, pays a
12 percent annual coupon, and is callable in 8 years for $1,100.
NEW QUESTION: 2
A. Option B
B. Option A
C. Option D
D. Option E
E. Option C
Answer: B,C,D
NEW QUESTION: 3
In setting up the wireless network, it is desired that the DHCP server that is configured in WLC1 provides IP addressing to the WLAN. When devices attempt to join the network, they fail to receive an IP address in the range provided by the DHCP server in WLC1, but they do receive an IP address from the DHCP server in SW1. What is causing this issue?
A. The primary DHCP server address in WLC1 is incorrect.
B. The external DHCP server in SW1 will always be the preferred DHCP server and WLC1 will always be the secondary DHCP server in the WLAN.
C. The primary DHCP server configured in WLC1 is not enabled.
D. The DHCP server address for SW1 needs to be removed from the DHCP server configuration in WLC1.
Answer: C
Explanation:
Explanation/Reference:
Explanation: This can be verified by the following screen shot, showing the DHCP server is disabled at the bottom:
