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NEW QUESTION: 1
A. Option D
B. Option A
C. Option C
D. Option B
Answer: B
Explanation:
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NEW QUESTION: 2
A zero coupon bond matures in 5 years and is yielding 5%. What is its modified duration?
A. 0
B. 1
C. 5.25
D. 4.76
Answer: D
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.
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You need to provision the resources in Azure to support the virtual machine that will be migrated from the New York office.
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Explanation:
Explanation
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