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NEW QUESTION: 1
Kwagmyre Investments, Ltd., hold two bonds: a callable bond issued by Mudd Manufacturing Inc. and a putable bond issued by Precarious Builders. Both bonds have option adjusted spreads (OAS) of 135 basis points (bp). Kevin Grisly, a junior analyst at the firm, makes the following statements (each statement is independent). Apparently, Grisly could benefit from a CFA review course, because the only statement that could be CORRECT is:
A. Given a nominal spread for Precarious Builders of 110 bp, the option cost is -25 bp.
B. The Z-spread for Mudd's bond is based on the YTM.
C. The cost of the call option on the Mudd bond is -15bp.
D. The spread over the spot rates for a Treasury security similar to Mudd's bond is 145 bp.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The "spread over the spot rates for a Treasury security similar to Mudd's bond" refers to the Z-spread on the bond.For a callable bond, the OAS < Z-spread, so this could be a true statement because 135bp < 145 bp.
The other statements are false. The option cost is calculated using the OAS and theZ-spread,not the nominal spread. The cost of the call option should be positive.(The issuer has to compensate for increased uncertainty from the call option.) The static spread (or Z-spread)is the spread over each of the spot rates in a given Treasury term structure,not the spread over the Treasury's YTM.
Following is a more detailed discussion:
The option-adjusted spread(OAS) is used when a bond has embedded options. The OAS can be thought of as the difference between the static or Z-spread and the option cost. For the exam, remember the following relationship between the static spread (Z-spread), the OAS, and the embedded option cost:
Z Spread - OAS = Option Cost in % terms
Remember the following option value relationships:

NEW QUESTION: 2
プロジェクトで提供される専門製品の品質を担当するのはどの役割ですか？
A. エグゼクティブ
B. シニアサプライヤー
C. 上級ユーザー
D. プロジェクト保証
Answer: B
Explanation:
Explanation
Reference http://www.fmdconsultants.co.uk/p2_roles_and_responsibilities_v01.docx

NEW QUESTION: 3
ユーザーのアカウントエージング情報を変更するために使用できるコマンドはどれですか？ （3つの正しい答えを選んでください。）
A. chsh
B. チャゲ
C. chattr
D. usermod
E. パスワード
Answer: B,D,E

NEW QUESTION: 4
Which of the following is a fast-emerging global sector that advises individuals and corporations on how to apply the highest ethical standards to every aspect of their business?
A. Integrity Management Consulting
B. Resource Capacity Management (RCM)
C. Business Capacity Management (BCM)
D. Service Capacity Management (SCM)
Answer: A

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