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NEW QUESTION: 1
A bond has a Macaulay duration of 6 years. The yield to maturity for this bond is currently 5%. If interest rates rise across the curve by 10 basis points, what is the impact on the price of the bond?
A. Increase of 57 basis points
B. Decrease of 10 basis points
C. Increase of 10 basis points
D. Decrease of 57 basis points
Answer: D
Explanation:
Explanation
Since Macaulay duration is 6 years, the modified duration is 6/(1+5%) = 5.71. This means that if interest rates were to rise by 1%, the bond price would decrease by 5.71%. Since interest rates have risen by 10 bps, (100bps = 1%), the bond's price would fall by roughly 0.571%, or 57 basis points
NEW QUESTION: 2
The maintenance strategy can be time-based or but can not be performance-based.
A. Correct
B. Incorrect
Answer: B
NEW QUESTION: 3
A developer must create a DrawList class that provides capabilities defined in the Sortable and Drawable interfaces. public interface Sortable { void sort(); } public interface Drawable { void draw(); } Which is the correct implementation?
A. Public class DrawList extends Sortable, Drawable {
public void sort() { /*implementation*/}
public void draw() { /*implementation*/}
}
B. Public class DrawList implements Sortable, Implements Drawable {
public void sort() { /*implementation*/}
public void draw() { /*implementation*/}
]
C. Public class DrawList implements Sortable, Drawable {
public void sort() { /*implementation*/}
public void draw() { /*implementation*/}
}
D. Public class DrawList extends Sortable, extends Sortable, extends Drawable { public void sort() { /*implementation*/ } public void draw() { /* implementation */}
Answer: C
NEW QUESTION: 4
What order do the following corrective action steps normally take for nonconforming product?
I. Analyze the problem.
II. Assign responsibility.
III. Take preventive action.
IV. Evaluate potential importance.
V. Investigate possible causes.
A. II, I, IV, V, III
B. II, IV, V, I, III
C. V, II, IV, I, III
D. I, II, V, IV, III
Answer: B