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NEW QUESTION: 1
Which of the following is TRUE?
A. SRRP is used in a Routed CO model with up to 2 routers per SRRP group.
B. VRRP is used in a Routed CO model with multiple routers per VRRP group.
C. SRRP is used in a Bridged CO model with up to 4 routers per SRRP group.
D. VRRP is used in a Bridged CO model with up to 2 routers per VRRP group.
Answer: A
NEW QUESTION: 2
Company GG is considering its future strategy on delivering a long-term competitive advantage. The Finance Director has recommended that the Board includes in the strategy a separate section on sustainability.
Which of the following is NOT a correct sustainability statement?
A. An advantage of sustainable development is the reduction of costs though efficiency.
B. The creation of wealth should be integrated with long-term sustainable development.
C. When establishing sustainability only financial key performance indicators should be considered.
D. Resources are used at a rate that allows them to be replaced.
Answer: C
NEW QUESTION: 3
Jack Thomas and Tim Bentley are analysts for Bond Analytics (BA). BA provides bond analysis for mutual fund managers, hedge fund managers, and institutional money managers in the United States. BA specializes in the valuation of international bonds and callable bonds, using intrasector analysis to find undervalued bonds. In addition to valuing the bonds, they also advise clients on whether to hedge currency risk for international bonds. Thomas has been a particularly strong advocate of hedging the currency risk of international bonds, especially in emerging markets, using forward contracts when they are available.
At a morning meeting, Thomas and Bentley are trying to decide whether to hedge the currency risk of a large issue of bonds from a Thai manufacturer of pressed steel, Nakhon Metals. The client considering purchasing the bonds is a large U.S. mutual fund, Epsilon Funds. Epsilon has started to explore the possibility of earning higher returns through currency management using forward contracts. Thomas and Bentley discuss the various hedges of currency risk for the Nakhon Metals bond. One possibility is using a forward hedge position on the Thai baht. A second possibility is using forward contracts where the baht is delivered for Korean won. Thomas states that the second hedge would be pursued if the won was expected to appreciate more against the U.S. dollar than the baht. In the second hedge, the manager would sell won for dollars at the future spot rate.
Thomas and Bentley gather the following information on the expected changes in the various currencies, the 1-year cash rates in the respective countries, and the expected return on the Nakhon bond.
Additionally, the Nakhon Metals bond has a duration of 7.30 and is being compared against a bond denominated in U.S. dollars, issued by Powhatan Industries. The Powhatan bond has a duration of 4.2 and a yield of 4.50%. Whichever bond is purchased will be held for the next year. Thomas projects that the yield for the Nakhon Metals bond is expected to increase by I 5 basis points while the yield on the Powhatan Industries bond is expected to stay constant.
The following day, Thomas and Bentley discuss the market for and valuation of callable and long duration bonds. They believe that interest rates are temporarily low and for this reason want to be careful about their bond investments. Although they could hedge interest rate risk, they prefer not to because they believe it reduces the ultimate long-term return.
Thomas says that due to secular changes in the bond market, bonds with structures are expected to become more scarce. He says that the problem with callable bonds has been that they typically trade at a premium due to their scarcity. Bentley states that bonds with long durations also trade at a premium because they are scarce as well.
Thomas states that the performance of callables and non-callables may differ when interest rates change due to the inherent call risk. He discusses the relative performance under two scenarios:
* Scenario A: Interest rates are near coupon rates and fall for both callables and non-callables by the same amount.
* Scenario B: Interest rates are historically very low and rise for both callables and non-callables by the same amount.
Determine whether Thomas and Bentley are correct or incorrect regarding their statements about the scarcity and pricing of callable and long duration bonds.
A. Only Bentley is correct.
B. Only Thomas is correct.
C. Both are correct.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Both Thomas and Beruley are correct. Both callable bonds and bonds with long durations trade at a premium due to their scarcity. (Study Session 9, LOS 30.b)
NEW QUESTION: 4
A newly hired backup administrator has taken control of a Dell EMC Avamar server that is protecting an Exchange DAG environment with 3 nodes. Backups of the DAG are running successfully. The administrator wants to perform an on-demand backup of the entire Exchange DAG, but cannot find a client that represents the DAG.
What is a possible reason for this?
A. Only DAGs with 5 or more nodes have a client representing the DAG
B. The Cluster Configuration Tool has not been run
C. The DAG is in an IP-less configuration
D. The client that represents the DAG is powered off
Answer: C
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