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NEW QUESTION: 1
The bonds of Grinder Corp. trade at a nominal spread of 150 basis points (bp) above comparable maturity
U.S. Treasury securities. The option adjusted spread (OAS) on the Grinder Corp. bonds is 75 bp. Using this information, and assuming that the Treasury yield curve is flat, which of the following statements is most likely to be true?
A. The option cost component of these bonds should be 75 bp.
B. The zero-volatility spread should be 75 bp.
C. The zero-volatility spread for these bonds is 225 bp.
Answer: A

NEW QUESTION: 2
Is A > B ?
(1) A2 > B2.
(2) B is positive.
A. Statement (1) BY ITSELF is sufficient to answer the question, but statement (2) by itself is not.
B. Either statement BY ITSELF is sufficient to answer the question.
C. Statements (1) and (2) TAKEN TOGETHER are sufficient to answer the question, even though NEITHER statement BY ITSELF is sufficient.
D. Statements (1) and (2) TAKEN TOGETHER are NOT sufficient to answer the question, requiring more data pertaining to the problem.
E. Statement (2) BY ITSELF is sufficient to answer the question, but statement (1) by itself is not.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Use both statements, find two sets of numbers that fit the statements yet give a different result.
Take A = 2, B = 1 the numbers fit the statements and A > B.
Take A = -2, B =1 the numbers fit the statements and B > A.
Therefore more sufficient data is required.

NEW QUESTION: 3
What is the target market for the HP V100 Cable/DSL router?
A. small-to-medium businesses
B. small office/home office customers
C. mission-critical enterprises
D. medium-to-large enterprises
Answer: B