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NEW QUESTION: 1
A corporate bond maturing in 1 year yields 8.5% per year, while a similar treasury bond yields 4%. What is the probability of default for the corporate bond assuming the recovery rate is zero?
A. 4.15%
B. 4.50%
C. Cannot be determined from the given information
D. 8.50%
Answer: A
Explanation:
Explanation
The probability of default would make the future cash flows from both the bonds 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))
=> p*0 + (1 - p)*(1 + 8.5%) = (1 - p)*1.085.
The cash flows from the treasury bond would be 1.04. These two should be equal, ie,
1.04 = (1- p)*1.085, implying p = 4.15%.
(Note: The above is a simplification intended for the exam. In reality investors would demand a 'credit risk premium' for the corporate bond 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.)

NEW QUESTION: 2
An application is processing clickslream data using Amazon Kinesis. The clickstream data feed into Kinesis experiences periodic spikes. The PutRecords API call occasionally fails and the logs show that the failed call returns the response shown below.

Which techniques will help mitigate this exception? (Select TWO.)
A. Reduce the frequency and/or size of the requests
B. Implement retries with exponential backoff
C. Reduce the number of KCL consumers.
D. Use Amazon SNS instead of Kinesis.
E. Use a PutRecord API instead of PutRecords
Answer: A,B

NEW QUESTION: 3
Which three are valid ways to populate a display item?
A. Executing a query
B. When-Button-Pressed trigger
C. Calculation
D. User input
E. initial Value property
Answer: B,C,E
Explanation:
Explanation/Reference:
Explanation:
C: You can use the attachable PL/SQL libraries to implement a flexible message function for messages that are displayed programmatically by the built-in routines MESSAGE orCHANGE_ALERT_MESSAGE, or by assigning a message to a display item from a trigger or procedure.
D: Creating Calculated Items
Change the Item Type to Display Item.
Set the Calculation Mode property to Formula.
Set the Formula property to the required formula.
Incorrect answers:
B: Display items and text items are fairly similar and share many of the same properties. The biggest difference between the two is that a user can navigate to a text item and change its value. This is not possible with a display item. As its name implies, it merely displays information.
Note: Display items do not allow any user interaction - they merely display data and never accept cursor focus.
Use a display item for the following situations:
* Null-canvas fields
* Context fields
* Fields that act as titles or prompts

NEW QUESTION: 4
Once a service has been created with a customer association, it is possible to change the customer association.
A. FALSE
B. TRUE
Answer: A