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NEW QUESTION: 1
Which of the following statements are true:
I. The convexity of a zero coupon bond maturing in 10 years is more than that of a 4% coupon bond with a modified duration of 10 years II. The convexity of a bond increases in a linear fashion as its duration is increased III. Convexity is always positive for long bond positions IV. The convexity of a zero coupon bond maturing in 10 years is less than that of a 4% coupon bond maturing in 10 years
A. III
B. II and IV
C. I and III
D. None of the statements is true
Answer: D
Explanation:
Explanation
Statement I is not correct because the 4% bond with the same modified duration as the zero coupon bond will have a maturity much later in the future than the zero coupon, and the final repayment coming much later will cause its convexity to be greater than the equivalent duration zero coupon bond.
Statement II is not correct as the convexity of a bond increases not in a linear fashion but in proportion to the square root of time as the maturity of the bond is increased.
Statement III is not correct as mortgage based bonds bring negative convexity even in the case of long positions, Statement IV is not correct as the duration of a zero coupon bond maturing in 10 years has a modified duration greater than that of a coupon bearing bond of the same maturity, which means its convexity is higher and not lower (note this is different from statement I where the modified durations were identical. Here, the maturity is identical which has different implications.) Therefore none of the statements is correct and Choice 'd' is the correct answer.

NEW QUESTION: 2
A solution architect is evaluating the reliability of a recently migrated application running on AWS. The front end is hosted on Amazon S3 and accelerated by Amazon CloudFront. The application layer running in a stateless Docker container on an Amazon EC2 On-Demand instance with an Elastic IP address. The storage layer is a MongoDB database running on an EC2 Reserved instance in the same Availability Zone as the application layer.
Which combination of steps should the solution architect take to eliminate single points of failure with minimal application code changes? (Select Two)
A. Create a REST API in Amazon API-Gateway and use AWS Lambda functions as the application layer.
B. Migrate the storage layer to Amazon DocumentDB (With MongoDB compatibility)
C. Migrate the storage layer to Amazon DynamoDB
D. Create an Application Load Balancer and move the storage layer to an EC2 Auto Scaling group.
E. Create an Application Load Balancer and migrate the Docker container to AWS Fargate.
Answer: B,E
Explanation:
Explanation
https://aws.amazon.com/fr/blogs/database/migrate-from-mongodb-to-amazon-documentdb-using-the-offline-met

NEW QUESTION: 3



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