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NEW QUESTION: 1
The cheapest to deliver bond for a treasury bond futures contract is the one with the :
A. the highest coupon
B. the lowest coupon
C. the lowest yield to maturity adjusted by the conversion factor
D. the lowest basis when comparing cash price to the futures spot price adjusted by the conversion factor
Answer: D
Explanation:
Explanation
Treasury bond futures do not specify which bond can be used to effect delivery, but allow the seller to pick from a number of available bonds. As a result, one of these eligible bonds emerges as being the 'cheapest' to deliver, and this CTD bond is determined by the basis between the cash price of the bond and the futures spot price as adjusted by the conversion factor for this specific bond. (ie, basis = Cash Price of the Bond - Futures Price x Conversion Factor) The bond with the lowest basis is generally the CTD - therefore Choice 'c' is the correct answer.

NEW QUESTION: 2





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

NEW QUESTION: 3
ANTI-DDOS policy is classified as dynamic drainage by drainage
A. True
B. False
Answer: B

NEW QUESTION: 4
You have been hired to redesign a network due to issues with congestion. How will a router function if the QoS mechanism of congestion avoidance is integrated into the existing network design?
A. the router forces inbound and outbound traffic to stay within a defined profile by using rate limiting
B. the router marks packets based on certain characteristics by using PBR 27
C. the router separates packets based on certain characteristics by using NBAR
D. the router handles the possible buildup of congestion by using WRED
E. the router handles the overflow of traffic by using FIFO
Answer: D

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