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NEW QUESTION: 1
Shaker Chin has an 11.000%, 4 year bond that is selling for a price of $98.432 and is currently yielding 11.50%. The table below shows how the price will vary given a 235 Basis Point change in market interest rates. Assuming the duration is 3.159 and the convexity is 6.296, what is the total estimated percentage price change based on a 235 BP market rate increase?
A. -7.0769%
B. -4.1071%
C. 7.7723%
Answer: A
Explanation:
This answer requires candidates to recognize how to handle an interest rate decrease. The duration estimate is a negative while the positive convexity is a positive adjustment. The detailed solution follows.
Estimated change using duration = Approximate percentage price change = -duration * dy *100, since duration = 3.159 and dy =
The estimated change associated with duration = -7.425%
Convexity adjustment = convexity measure * (dy)2 * 100 Since convexity = 6.296, and (dy)2 = (0.0235)2
The adjustment associated with convexity = +0.348%
Total estimated percentage price change = The estimated change associated with duration + estimated change associated with convexity = -7.425% + 0.348% =-7.0769%
Another simple solution is to take prices as given:
(91.466 - 98.432)/98.432 = - 0.070770 = -7.0770%.
However, you'd better understand how to derive the answer using duration and convexity!

NEW QUESTION: 2
What is one potential anti-pattern for microservices?
A. Making too many microservices and making them too small
B. Relying on discovery mechanisms to deal with the transient nature of service instances
C. Refactoring an application slowly over time, rather than doing it all at once
D. Dividing an application up into entities and aggregates, rather than keeping them together
Answer: D

NEW QUESTION: 3
시나리오 계획 프로세스는 다음 단계 중 무엇으로 시작합니까?
A. 조직이 향후 비즈니스를 수행하는 방식에 영향을 미칠 문제 또는 결정을 선택합니다.
B. 조직에 향후 개발을 알리기 위한 선행 지표 선택.
C. 조직 환경의 핵심 요소에 영향을 미칠 추세를 파악합니다.
D. 고객, 공급 업체, 경쟁 업체, 직원 및 기타 이해 관계자가 어떻게 반응 할 것인지 식별합니다.
Answer: A

NEW QUESTION: 4


Answer:
Explanation:

Explanation

References: https://msdn.microsoft.com/library/dn530751.aspx