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NEW QUESTION: 1
The required return of an option-free, 10% coupon, semi-annual pay bond with 12 years to maturity is
10.37%. A 10% coupon, semi-annual pay bond with 12 years to maturity is callable after the fifth year.
Assuming credit quality and other relevant factors are equivalent:
A. the required return of the callable bond is greater than 10.37%
B. the required return of the callable bond is equal to 10.37%
C. the required return of the callable bond is less than 10.37%
Answer: A
Explanation:
Holding the promised cash flows constant, a bond's price and required return are inversely related. The call option reduces the value of the callable bond relative to the value of an option-free bond.
NEW QUESTION: 2
What is a requirement for a profit and loss account?
A. It must be set as a cash account.
B. It must be located in the first three drawers of the chart of accounts.
C. The balance has to be cleared at the end of each fiscal year.
D. The balance has to be carried forward from one fiscal year to the next fiscal year.
Answer: C
NEW QUESTION: 3
Simple Network Management Protocol can be used on Cascade Profiler for:
A. Obtaining interface information from routers.
B. Obtaining network device status through the Cascade Profiler receiving SNMP traps.
C. Obtaining user PC status through the Cascade Profiler receiving SNMP traps.
D. All of the above.
E. Obtaining interface information from user PCs.
Answer: A