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NEW QUESTION: 1
Jerry Sanders, CFA, has been asked to analyze the 20-year bonds of Marietta Tech, Inc., which are currently being held in a corporate bond portfolio managed by a colleague, and to recommend whether the bonds should be sold or held. The bonds currently have a yield spread of 1.55% over Treasuries.
Marietta Tech, Inc. designs, manufactures, and markets specialty trucks and truck bodies mounted on new truck chassis produced by others, including concrete mixers, refuse bodies, fire and emergency vehicles, defense trucks, cut-away and dry freight van bodies, refrigerated units, stake bodies, and other specialized trucks. Marietta also manufactures fiberglass wind deflectors, armored trucks, shuttle buses, and cargo vans. Marietta's customers are located in the United States and Canada.
Exhibit 1: Selected Financial Data for Marietta Tech, Inc. (in thousands of $)


At lunch Sanders discusses the credit analysis of various types of bonds with Elizabeth Yan, who was just hired as a bond analyst. Yan makes the following statements:
Statement 1: An analysis of the issuer's business and operating risks is important to the analysis of corporate bond credit risk but not important for the credit analysis of asset backed securities (ABS).
Statement 2: The unique bond covenants in a municipal bond's trust indenture require an additional level of credit analysis not necessary in a corporate credit analysis.
Jerry Sanders, CFA, has been asked to analyze the 20-year bonds of Marietta Tech, Inc., which are currently being held in a corporate bond portfolio managed by a colleague, and to recommend whether the bonds should be sold or held. The bonds currently have a yield spread of 1.55% over Treasuries.
Marietta Tech, Inc. designs, manufactures, and markets specialty trucks and truck bodies mounted on new truck chassis produced by others, including concrete mixers, refuse bodies, fire and emergency vehicles, defense trucks, cut-away and dry freight van bodies, refrigerated units, stake bodies, and other specialized trucks. Marietta also manufactures fiberglass wind deflectors, armored trucks, shuttle buses, and cargo vans. Marietta's customers are located in the United States and Canada.
Exhibit 1: Selected Financial Data for Marietta Tech, Inc. (in thousands of $)


At lunch Sanders discusses the credit analysis of various types of bonds with Elizabeth Yan, who was just hired as a bond analyst. Yan makes the following statements:
Statement 1: An analysis of the issuer's business and operating risks is important to the analysis of corporate bond credit risk but not important for the credit analysis of asset backed securities (ABS).
Statement 2: The unique bond covenants in a municipal bond's trust indenture require an additional level of credit analysis not necessary in a corporate credit analysis.
In addition to the factors noted by Pctrovich, which of the following is likely to be the most important in the risk assessment of tax-backed municipal debt?
A. A measure of the issuer's debt structure, such as debt as a percentage of total real estate value of properties subject to taxation.
B. An evaluation of trends in the local employment level and economic environment, which permits an assessment of the stability of the revenue base and the ability of the municipality to service the debt in the future.
C. An evaluation of any user-charge covenants that specify how prices will be set on the product or service provided by the municipality with the proceeds of the bond issue.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice C is most likely to best complement the other three factors Petrovich already mentioned. Choice A sounds reasonable, but it is very similar to factor (1) because both measure the municipality's debt burden, which means she already identified it. Covenants (as suggested in choice B) are important in the analysis of revenue bonds, not necessarily in the analysis of tax-backed bonds. (Study Session 14, LOS 51.h) (Study Session 14, LOS 54.d)

NEW QUESTION: 2
In Huawei Desktop Cloud, when creating a desktop template, the virtual machine needs to be restarted after the packaging is completed bbs.hh010.com
A. Yes
B. Wrong
Answer: B

NEW QUESTION: 3
An administrator is asked to install and power-on a new MX740c sled in an MX7000 chassis. The administrator inserts the sled and presses the power button. They notice that the power button LED is blinking green. After a short time power button turns to solid green and the server finally turns on.
What operation was in progress when the power button was blinking green?
A. Lifecycle Controller update was in progress
B. iDRAC was booting
C. Lifecycle Controller was taking firmware inventory
D. iDRAC was updating firmware
Answer: B

NEW QUESTION: 4
Bei digitalen Signaturen muss der Absender die Daten "signieren", indem er sie mit dem öffentlichen Schlüssel des Absenders verschlüsselt, um sie dann vom Empfänger mit dem privaten Schlüssel des Empfängers zu entschlüsseln. Richtig oder falsch?
A. Falsch
B. Richtig
Answer: B
Explanation:
Erläuterung:
Bei digitalen Signaturen muss der Absender die Daten "signieren", indem er sie mit dem privaten Schlüssel des Absenders verschlüsselt. Anschließend muss der Empfänger sie mit dem öffentlichen Schlüssel des Absenders entschlüsseln.