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NEW QUESTION: 1

A. Option C
B. Option D
C. Option B
D. Option A
E. Option E
Answer: C,D,E

NEW QUESTION: 2
A systems administrator wants to know the current status of a series of dd jobs that were started in the background three hours ago.
Which of the following commands will achieve this task?
A. sudo killall -HUP dd
B. sudo killall dd
C. sudo killall -USR1 dd
D. sudo killall -TERM dd
Answer: C

NEW QUESTION: 3
A zero coupon corporate bond maturing in an year has a probability of default of 5% and yields 12%. The recovery rate is zero. What is the risk free rate?
A. 6.40%
B. 7.00%
C. 5.26%
D. 5.00%
Answer: A
Explanation:
Explanation
The probability of default would make the expected value of the future cash flows from both the corporate bond and the risk free bond 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))
=> 5%*0 + (1 - 5%)*(1 + 12%) = (1 + Rf).
therefore Rf = 6.4%
(In reality investors would demand a 'credit risk premium' 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.)