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NEW QUESTION: 1
Which of the following statements are true:
I. The convexity of a zero coupon bond maturing in 10 years is more than that of a 4% coupon bond with a modified duration of 10 years II. The convexity of a bond increases in a linear fashion as its duration is increased III. Convexity is always positive for long bond positions IV. The convexity of a zero coupon bond maturing in 10 years is less than that of a 4% coupon bond maturing in 10 years
A. I and III
B. III
C. None of the statements is true
D. II and IV
Answer: C
Explanation:
Explanation
Statement I is not correct because the 4% bond with the same modified duration as the zero coupon bond will have a maturity much later in the future than the zero coupon, and the final repayment coming much later will cause its convexity to be greater than the equivalent duration zero coupon bond.
Statement II is not correct as the convexity of a bond increases not in a linear fashion but in proportion to the square root of time as the maturity of the bond is increased.
Statement III is not correct as mortgage based bonds bring negative convexity even in the case of long positions, Statement IV is not correct as the duration of a zero coupon bond maturing in 10 years has a modified duration greater than that of a coupon bearing bond of the same maturity, which means its convexity is higher and not lower (note this is different from statement I where the modified durations were identical. Here, the maturity is identical which has different implications.) Therefore none of the statements is correct and Choice 'd' is the correct answer.

NEW QUESTION: 2
You are configuring InfoSphere MDM Server for a financial institution with a large number of customers. Which two statements are correct regarding performance of the InfoSphere MDM Server application? (Choose two,)
A. Turning on the suspect Duplicate Processing feature does not have any impact on the performance
B. Smart inquiries help in minimizing the performance impact
C. The summary data indicators feature avoids queries on a per transaction basis thus helping improve performance.
D. The Transaction Audit Information Log will not have any impact on the performance
Answer: B,C

NEW QUESTION: 3
Your network contains an Active Directory domain named contoso.com. The domain contains a server named Server1 that runs Windows Server 2012 R2. Server1 has the Active Directory Rights Management Services server role installed.
The domain contains a domain local group named Group1.
You create a rights policy template named Template1. You assign Group1 the rights to Template1.
You need to ensure that all the members of Group1 can use Template1.
What should you do?
A. Configure the email address attribute of all the users who are members of Group1.
B. Convert the scope of Group1 to universal.
C. Configure the email address attribute of Group1.
D. Convert the scope of Group1 to global.
Answer: A