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NEW QUESTION: 1
A treasury bond paying a 4% coupon is sold at a discount. Assume that the yield curve stays flat and constant over the next one year. The price of the bond one year hence can be expected to:
A. Cannot be determined with the given information
B. Decrease
C. Stay the same
D. Increase
Answer: D
Explanation:
Explanation
Fixed income instruments go through the 'pull-to-par' phenomenon as they get closer to maturity. In this case, since interest rates stay constant, the bond will rise in price over the year to get closer to its redemption value.
Of course, you can apply the standard discounting logic as well to say that while one year's coupon payment drops off, the remaining years' cash flows get discounted for a year less and the value would go up. However it is just easier to remember that at maturity the bond will be close to its notional or face value, and therefore if it is selling at a discount now, it will rise in value over its remaining life to get to the face value.
Exactly the reverse logic would apply to bonds sold at a premium, they would decline in value over time as to get to the par value at maturity.

NEW QUESTION: 2
You are configuring CoS classifiers and want to use both BA and MF classification. After applying the configuration, you realize that the classifiers have a conflict.
Which statement is true?
A. Neither classification method is applied.
B. Both classifications are applied randomly.
C. MF classification overrides BA classification.
D. BA classification overrides MF classification.
Answer: C

NEW QUESTION: 3
In a calculation view of type cube with star join, you want to join three dimensions to the facts. Two of the dimensions use full outer joins and one dimension uses a left outer join you did not set cardinality of the data sources.
Why will this NOT work?
Please choose the correct answer.
Response:
A. Full outer joins require to be set
B. Full outer joins are NOT available in the star join node.
C. Full outer joins CANNOT be mixed on the same star join node with other join types.
D. Full outer joins restricted to one dimension in a star join node.
Answer: D