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NEW QUESTION: 1
MBIA, Inc., a municipal bond insuring company, has a bond issue that is selling for $80.05 to yield 9.5%.
The bond has a coupon rate of 7%, with semiannual payments, and matures in 2025.If interest rates in the economy increase, which of the following statements will be true, all else equal?
I. the nominal yield of the bond will increase.
II. the yield-to-maturity of the bond will increase.
III. the current yield of the bond will increase.
A. II and III only
B. I, II, and III
C. I and II only
D. I only
Answer: A
Explanation:
Explanation/Reference:
Explanation: Only statements II and III are true. If interest rates in the economy increase, both the bond's yield-to-maturity and its current yield will increase. The bond's yield-to-maturity will increase to reflect current market rates on similar risk investments, and this, in turn, causes the price of the bond to fall. The current yield of the bond is the interest payment divided by the bond price. Since the interest payment does not change with interest, the current yield will increase with the decrease in the bond price. The nominal yield of the bond is the same as its coupon rate, or what it yields when it sells at its par value, and does not change with changes in interest rates in the economy.

NEW QUESTION: 2

A. Option C
B. Option B
C. Option A
D. Option D
Answer: A

NEW QUESTION: 3
You have been asked to install and configure a new switch in a customer network. Use the console access to the existing and new switches to configure and verify correct device configuration.





You are adding new VLANs. VLAN500 and VLAN600 to the topology in such way that you need to configure SW1 as primary root for VLAN 500 and secondary for VLAN 600 and SW2 as primary root for VLAN 600 and secondary for VLAN 500. Which configuration step is valid?
A. On SW2; configure vtp mode as off and configure VLAN 500 and VLAN 600; configure back to vtp server mode.
B. Configure VLAN 500 & VLAN 600 on both SW1 & SW2
C. Configure VLAN 500 and VLAN 600 on SW2 only
D. Configure VLAN 500 and VLAN 600 on SW1 ,SW2 and SW4
E. Configure VLAN 500 and VLAN 600 on SW1 only
Answer: B
Explanation:
Explanation
By issuing the "show vtp status command on SW2, SW2, and SW4 we see that both SW1 and SW2 are operating in VTP server mode, but SW4 is a client, so we will need to add both VLANs to SW1 and SW2.




NEW QUESTION: 4
Which of the following statements are incorrect? (Multiple Choice)
A. The priority of each static route can be different
B. If the cost of the route is larger, the higher the priority of the route.
C. By default, the order of route priorities is that direct routes are higher than OSPF.
D. In VRP, the greater the priority value of the routing protocol, the higher the priority of the route_
Answer: B,D

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