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NEW QUESTION: 1
Which bond has the greatest price volatility? A
A. 10% coupon bond with a 10-year life.
B. 5% coupon bond with a 20-year life.
C. 5% coupon bond with a 10-year life.
D. 10% coupon bond with a 20-year life.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
This question is asking: given a change in yield, which of the bonds will exhibit the greatest price change?
Of the four choices, the bond with the longest maturity and lowest coupon will have the greatest price volatility.
All else equal, the bond with the longer term to maturity is more sensitive to changes in interest rates. Cash flows that are further into the future are discounted more than near-term cash flows. Here, this means that one of the 20-year bonds will have the highest volatility. Similar reasoning applies to the coupon rate. A lower coupon bond delivers more of its total cash flow (the bond's par value) at maturity than a higher coupon bond. All else equal, a bond with a lower coupon than another will exhibit greater price volatility.
Here, this means that of the 20-year bonds, the one with the 5% coupon rate will exhibit greater price volatility than the bond with the 10% coupon.

NEW QUESTION: 2
Tony works as a Software Developer for TechNet Inc. He creates a satellite assembly named
SatAssembly1. He wants to install SatAssembly1 in the global assembly cache. Therefore, he compiles the assembly by using the Al.exe tool and signs SatAssembly1. Which of the following possible tools will Tony use to sign SatAssembly1?
Each correct answer represents a complete solution. Choose two.
A. .NET Services Installation tool
B. Installer tool
C. Strong Name tool
D. File Signing tool
Answer: A,D

NEW QUESTION: 3









A. Option H
B. Option C
C. Option G
D. Option B
E. Option A
F. Option F
G. Option D
H. Option E
Answer: G

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