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NEW QUESTION: 1
Which of the following statements is true:
I. On-the-run bonds are priced higher than off-the-run bonds from the same issuer even if they have the same duration.
II. The difference in pricing of on-the-run and off-the-run bonds reflects the differences in their liquidity III. Strips carry a coupon generally equal to that of similar on-the-run bonds IV. A low bid-ask spread indicates lower liquidity
A. I, II and III
B. II and IV
C. III and IV
D. I and II
Answer: D
Explanation:
Explanation
On-the-run bonds yield less, and therefore are priced higher than similar off-the-run bonds. The difference in their pricing reflects the fact that on-the-run bonds are more liquid than off-the-run bonds. Therefore statements I and II are correct. Bonds are on-the-run when they are issued, and change hands frequently, and over time as they become 'seasoned', newer bonds take their place as on-the-run bonds making them off-the-run.
Strips are zero coupon instruments, and do not carry any coupon. Therefore statement III is not correct.
A lower bid-ask or bid-offer spread indicates lower transaction costs and is a result of greater liquidity. A higher bid-ask spread results for less liquid securities. Therefore statement IV is not correct.
NEW QUESTION: 2
When using a non-manual consolidation type, when would the administrator update the consolidation structure?
A. When changing the company structure
B. When adding an account
C. When importing investments for a parent company
D. When entering period data
Answer: A
NEW QUESTION: 3
Which type of a sensor requires an embedded data collector in the switch to support profiling?
A. IOS sensor
B. DHCP sensor
C. CDP sensor
D. LLDP sensor
Answer: A