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NEW QUESTION: 1
Kylie Autumn, CFA, is a consultant with Tri-Vision Group. Robert Lullum, Senior Vice President ai Langsford Investments, has asked for assistance with the evaluation of mortgage-backed and collateralized mortgage obligation (CMO) derivative securities for potential inclusion in several client portfolios. Langsford Investments mainly deals with equity investments and REITs, but the company recently purchased a small firm that invests mainly in fixed-income securities.
Lullum has done some research on the appropriate spread measures and option valuation models for fixed-income securities and wants to clarify some points. He wants to know if the following statements are correct:
Statement 1: The proper spread measure for option-free corporate bonds is the nominal spread.
Statement 2: Callable corporate bonds and mortgage-backed securities should be measured using the option-added spread.
Statement 3: The Z-spread is appropriate for credit card ABS and auto loan ABS.
While Lullum meets with Autumn, Janet Van Ark, CFA charterholder and equity-income portfolio manager for Langsford, is attempting to purchase bonds that may also provide her with equity exposure in the future. She has decided to analyze an 8% annual coupon bond with exactly 20 years to maturity. The bonds are convertible into 10 common shares for each $ 1,000 of par (face) value. The bond's market price is $920, and the common stock has a market price of $40. Van Ark estimates that the stock will increase in value to $70 within the next two years. The stock's annual dividend is $0.40 per share, and the market yield on comparable non-convertible bonds'is 9.5%.
Carl Leighton, a Langsford analyst and Level 2 CFA candidate, works with mortgage-backed and other asset-based securities. He provides Lullum with a list of credit enhancements for asset-backed securities, which includes letters of credit, excess servicing spread funds, overcollateralization, and bond insurance.
Lullum then asks him for a status report of the firm's exposure to paythrough securities. He also asks Leighton to calculate the single-monthly mortality rate (SMM) and estimate the prepayment for the month for a seasoned mortgage pool with a $500,000 principal balance remaining. The scheduled monthly principal payment is $ 150 and the conditional prepayment rate (CPR) is 7%.
Which of the following pairs correctly identifies the two external credit enhancements in Leighton's list?
A. Letters of credit and bond insurance.
B. Excess servicing spread funds and bond insurance.
C. Letters of credit and excess servicing spread funds.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Excess servicing spread funds (a type of reserve fund) and overco I lateralization are internal credit enhancements. Letters of credit and bond insurance are external enhancements. (Study Session 15, LOS
56.d)

NEW QUESTION: 2
In which two circumstances would Cisco Unified Communications Manager accept inbound H.323 calls from unknown IP hosts? (Choose two.)
A. after administrators have changed the Cisco Unified Communications Manager clusterwide service parameter of "Unknown Caller ID Flag" to true
B. when inbound calls are routed via intercluster trunks
C. when inbound H.323 calls are routed via non-gatekeeper-controlled trunks
D. when inbound calls are routed using H.323 fast start
E. when inbound H.323 calls are routed via gatekeeper-controlled trunks
F. after administrators have changed the Cisco Unified Communications Manager clusterwide service parameter of "Accept Unknown TCP connection" to true
Answer: E,F

NEW QUESTION: 3

A. 0
B. 1
C. 2
D. 3
Answer: C
Explanation:
A PS/2 Mini-DIN connector has 6-pins , while only four are used. Pin 1 is used for keyboard data signal, pin 3 is ground, pin 4 has +5 Volt DC, pin 5 is used for keyboard clock, and pins 2 and 6 are not used. The PS/2 6-pin Mini-DIN connector is used for both keyboard and mouse. Older keyboard connectors use 5-pin DIN connector.