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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. II and IV
C. III
D. None of the statements is true
Answer: D
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
Six people working in a company P, Q, R, S, T and U apply for getting posted out from their present
stations. The company cannot post out all six people immediately. The remaining employees go on a
waiting list and will be posted in the order in which they appear on that list.
Postings are subject to the following constraints:
No more than three employees can be posted immediately.
U can be posted neither before P is posted nor before Q is posted.
If S is assigned to the waiting list, T must also be assigned to the waiting list.
R must be on the waiting list.
If Q is the third on the waiting list, which of the following must be true
A. Three people are posted immediately
B. R is ahead of Q on the waiting list.
C. At most two people are immediately posted
D. Exactly one person is immediately posted
E. U is after R on the waiting list
Answer: C

NEW QUESTION: 3
Exhibit:

Which statement is true?
A. Traps are sent to 10.21.15.180
B. Traps are allowed from 10.21.15.16
C. Traps are allowed from 10.21.15.180
D. Traps are sent to 10.21.15.16
Answer: B