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NEW QUESTION: 1
Two parties enter into a three-year interest rate swap, which involves the exchange of LIBOR+1% for a fixed rate of 12% on a $100 million notional amount. The LIBOR rate today is 11%, but is expected to increase to 15% in one year and fall back down to 8%. Which statement accurately depicts the flow of net cash flows between the two counter-parties?
A. The fixed rate payer would receive a payment of $4 million at the end of year two, while the variable rate payer would receive $3 million at the end of year three.
B. The fixed rate payer will have to pay $3 million at the end of the second year and $3 million at the end of the third year.
C. The variable rate payer would receive a payment of $4 million at the end of year two, while the fixed rate payer would receive $3 million at the end of year three.
Answer: A
Explanation:
With a variable of LIBOR + 1%, the effective interest payment for the variable rate payer will be 12% in year one, 16 in year two, and 9% in year three.
End of yr 1: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 12%): $12 million.
net cash flow received by fixed payer: NIL.
End of yr 2: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 16%): $16 million.
net cash flow received by fixed payer: $4 million.
End of yr 3: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 9%): $9 million. net cash flow received by variable payer: $3 million.
NEW QUESTION: 2
What are two enhancements that OSPFv3 supports over OSPFv2? (Choose two.)
A. It can support multiple IPv6 subnets on a single link.
B. It supports up to 2 instances of OSPFv3 over a common link.
C. It requires the use of ARP.
D. It routes over links rather than over networks.
Answer: A,D
Explanation:
Here is a list of the differences between OSPFv2 and OSPFv3:
They use different address families (OSPFv2 is for IPv4-only, OSPFv3 can be used for IPv6-only or both protocols OSPFv3 introduces new LSA types OSPFv3 has different packet format OSPFv3 uses different flooding scope bits (U/S2/S1) OSPFv3 adjacencies are formed over link-local IPv6 communications OSPFv3 runs per-link rather than per-subnet OSPFv3 supports multiple instances on a single link, Interfaces can have multiple IPv6 addresses OSPFv3 uses multicast addresses FF02::5 (all OSPF routers), FF02::6 (all OSPF DRs) OSPFv3 Neighbor Authentication done with IPsec (AH) OSPFv2 Router ID (RID) must be manually configured, still a 32-bit number
http://www.networkworld.com/article/2225270/cisco-subnet/ospfv3-for-ipv4-and-ipv6.html
NEW QUESTION: 3
What is a required attribute to configure NTP authentication on a Cisco ASA?
A. IKEv2
B. AAA
C. IPsec
D. Key ID
Answer: D