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NEW QUESTION: 1
A corporate bond maturing in 1 year yields 8.5% per year, while a similar treasury bond yields 4%. What is the probability of default for the corporate bond assuming the recovery rate is zero?
A. 4.50%
B. Cannot be determined from the given information
C. 4.15%
D. 8.50%
Answer: C
Explanation:
Explanation
The probability of default would make the future cash flows from both the bonds identical. If p be the probability of default, the cash flows from the risky corporate bond would be
= (cash flows in the event of default x probability of default) + (cash flows without default x (1 - probability of default))
=> p*0 + (1 - p)*(1 + 8.5%) = (1 - p)*1.085.
The cash flows from the treasury bond would be 1.04. These two should be equal, ie,
1.04 = (1- p)*1.085, implying p = 4.15%.
(Note: The above is a simplification intended for the exam. In reality investors would demand a 'credit risk premium' for the corporate bond over and above the expected default loss rate. They are unlikely to be happy with just being compensated with exactly the expected default loss rate plus the risk-fre rate because the expected default loss rate itself is uncertain. They would demand some premium over and above what the default rate alone might mathematically imply above the risk free rate. In this question, this credit risk premium is ignored.)

NEW QUESTION: 2
A client is implementing fixed assets in Dynamics 365 Finance.
You need to specify which parameters should be configured to meet the business requirements.
Which parameters meet the requirements? To answer, drag the appropriate parameters to the correct requirements. Each parameter may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation

Reference:
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/tasks/set-up-fixed-asset-posting-profiles
https://docs.microsoft.com/en-us/dynamics365/finance/fixed-assets/set-up-fixed-assets

NEW QUESTION: 3
A company plans to use Dynamics 365 for Finance and Operations. You need to configure basic budgeting.
Which set of actions must you perform?
Which set of actions must you perform?

A. Option D
B. Option A
C. Option B
D. Option C
Answer: A
Explanation:
Explanation
References:
https://docs.microsoft.com/en-us/dynamics365/unified-operations/financials/budgeting/basic-budgeting-overview

NEW QUESTION: 4
Which of the following is not a benefit of hiring a multigenerational workforce?
A. Recruiting for a multigenerational workforce increase the applicant pool from which to choose employees.
B. A multigenerational workforce is a reflection of the population, considering the large number of baby boomers who are reaching retirement age.
C. A multigenerational workforce increases an organization's productivity.
D. A multigenerational workforce increases the availability of different perspectives for use in management decision-making.
Answer: C
Explanation:
Explanation/Reference:
Answer option C is correct.
A multigenerational workforce is one example of the diversity represented in the workplace today. Bringing in new points of view for strategic decision making and needs identification (D), the ability to access the knowledge of a broad range of workers (A), and reflecting the ever-changing face of the customers (B) are three of the benefits of having an older workforce. A multi-generational workforce does not directly impact organizational productivity.
Chapter: Core Knowledge Requirements for HR Professionals
Objective: Review Questions