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NEW QUESTION: 1
Alpha Bank determined that Delta Industrial Machinery Corporation has 2% change of default on a one-year no-payment of USD $1 million, including interest and principal repayment. The bank charges 3% interest rate spread to firms in the machinery industry, and the risk-free interest rate is 6%. Alpha Bank receives both interest and principal payments once at the end the year. Delta can only default at the end of the year. If Delta defaults, the bank expects to lose 50% of its promised payment. Six months after Alpha Bank provides USD $1 million loan to the Delta Industrial Machinery Corporation, a new competitor enters the machinery industry, causing Delta to adjust its prices and mark down the value of its inventory. Hence, the probability of default increases from 2% to 10% and the loss given default increases from 50% to 75%. If Alpha Bank can reprice the loan, what should the new rate be?
A. 10%
B. 16.5%
C. 13%
D. 20.5%
Answer: D

NEW QUESTION: 2
When a user employs a client-side digital certificate to authenticate to a web server through Secure Socket Layer (SSI.), confidentiality is MOST vulnerable to which of the following?
A. Trojan
B. Man-in-the-middle attack
C. Repudiation
D. IP spoofing
Answer: A
Explanation:
A Trojan is a program that gives the attacker full control over the infected computer, thus allowing the attacker to hijack, copy or alter information after authentication by the user. IP spoofing will not work because IP is not used as an authentication mechanism. Man-in-the-middle attacks are not possible if using SSL with client-side certificates. Repudiation is unlikely because client-side certificates authenticate the user.

NEW QUESTION: 3






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

NEW QUESTION: 4
DRAG DROP


Answer:
Explanation: