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NEW QUESTION: 1
A zero coupon bond matures in 5 years and is yielding 5%. What is its modified duration?
A. 0
B. 1
C. 4.76
D. 5.25
Answer: C
Explanation:
Explanation
A zero coupon bond has a Macaulay duration equal to its maturity, ie in this case 5 years. We can calculate modified duration from Macaulay duration by using the following relationship:
Modified duration = Macaulay duration/(1 + y) where y is the yield.
Therefore the correct answer is 5 / (1.05) = 4.76.
Or intuitively, all the other answers appear clearly incorrect: 5 and 5.25 are too high, and 4 is too low.
Therefore the only reasonable choice is 4.76.
NEW QUESTION: 2
When the HPE OneView appliance starts up for the very first time, what Is the administrator required to do immediately after logging in for the first time?
A. Configure the management IP
B. Change the Administrator password
C. Add licenses
D. Create a backup
Answer: B
NEW QUESTION: 3
The three processes of Project Cost Management are:
A. Estimate Costs, Determine Budget, and Control Costs.
B. Determine Budget, Control Schedule, and Estimate Activity Resources.
C. Estimate Costs, Control Schedule, and Control Costs.
D. Estimate Costs, Determine Budget, and Estimate Activity Resources.
Answer: A