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NEW QUESTION: 1
Which of the following will have a higher reinvestment risk when compared to a 6% bond issued at par?
Assume all bonds have identical yield to maturity.
I. A coupon bearing bond with a coupon rate of 2%
II. An amortizing bond
III. A coupon bearing bond with a coupon rate of 11%
IV. A zero coupon bond
A. I and III
B. II and III
C. II, III and IV
D. I, II and IV
Answer: B
Explanation:
Explanation
Imagine a bond that provides just two cash flows: $100 in one year and $10 in 10 years. Imagine another bond that pays nothing now but $100 in 10 years. Assume that both have identical yields to maturity. Yet despite the identical YTM, the bonds are quite dissimilar. For the first bond, we face the risk that we would receive the bulk of the present value of the bond in an year's time, and while there is a small amount due in 10 years, the first payment may not find an equally attractive investment opportunity. Reinvestment risk refers to the risk that cash flows from a bond may not be investible at the yield to maturity for the bond. In such cases, bonds that have longer durations are preferable.
A coupon bearing bond with a coupon rate lower than our benchmark bond will carry a lower reinvestment risk as its cash flows are weighted more towards the end. An amortizing bond returns a part of the principle periodically, increasing reinvestment risk. A higher coupon bearing bond will have a higher reinvestment risk, and a zero coupon bond will have the least reinvestment risk.

NEW QUESTION: 2


Answer:
Explanation:

NEW QUESTION: 3
HPE의 지능형 스토리지 솔루션을 고객에게 제공하기 위해 논의해야 할 주제는 무엇입니까?
A. 클라우드 작업 부하 및 지출에 대한 더 많은 통찰력과 데이터가 필요합니다.
B. IT 운영자와 개발자가 온 - 프레미스 및 공용 클라우드 환경에서 동일한 도구를 사용할 수 있는 기능.
C. 고객이 이전 저장 솔루션에 대해 지불 한 금액입니다.
D. IT 부서가 하이브리드 또는 멀티 클라우드 환경에 있어야 하는 곳에서 데이터를 이동할 수 있는 기능.
Answer: D