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NEW QUESTION: 1
If two bonds with identical credit ratings, coupon and maturity but from different issuers trade at different spreads to treasury rates, which of the following is a possible explanation:
I. The bonds differ in liquidity
II. Events have happened that have changed investor perceptions but these are not yet reflected in the ratings III. The bonds carry different market risk IV. The bonds differ in their convexity
A. III and IV
B. I and II
C. I, II and IV
D. II and IV
Answer: B
Explanation:
Explanation
When two bonds that appear identical in every respect trade at different prices, the difference is often due to differences in liquidity between the two bonds (the less liquid bond will be cheaper and yield higher), and also due to the fact that ratings from the major rating agencies do not generally react to day to day changes in the market. The market's perception of the differences in the two credits will cause a divergence in the prices. This has been an extremely visible phenomenon during the credit crisis of 2007-2009, where fixed income security prices have changed sharply for many securities without any changes in external credit ratings.
Bonds carrying 'different market risk' is meaningless, and so is the difference in convexity (because the calculated convexity would be identical for similar bonds).
Therefore Choice 'c' is the correct answer.

NEW QUESTION: 2
In an underfloor duct system, pre-set inserts should be leveled to 1/8 inch below the finished pour.
A. True
B. False
Answer: A

NEW QUESTION: 3
You have an Azure subscription that contains the resources shown in the following table.

You need to ensure that ServerAdmins can perform the following tasks:
Create virtual machine to the existing virtual network in RG2 only.
The solution must use the principle of least privilege.
Which two role-based access control (RBAC) roles should you assign to ServerAdmins? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. A custom RBAC role for the subscription
B. the Network Contributor role for RG2
C. a custom RBAC role for RG2
D. the Contributor role for the subscription
E. the Virtual Machine Contributor role for RG1.
F. the Network Contributor role for RG1.
Answer: B,E