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NEW QUESTION: 1
Two parties enter into a three-year interest rate swap, which involves the exchange of LIBOR+1% for a fixed rate of 12% on a $100 million notional amount. The LIBOR rate today is 11%, but is expected to increase to 15% in one year and fall back down to 8%. Which statement accurately depicts the flow of net cash flows between the two counter-parties?
A. The fixed rate payer will have to pay $3 million at the end of the second year and $3 million at the end of the third year.
B. The variable rate payer would receive a payment of $4 million at the end of year two, while the fixed rate payer would receive $3 million at the end of year three.
C. The fixed rate payer would receive a payment of $4 million at the end of year two, while the variable rate payer would receive $3 million at the end of year three.
Answer: C
Explanation:
With a variable of LIBOR + 1%, the effective interest payment for the variable rate payer will be 12% in year one, 16 in year two, and 9% in year three.
End of yr 1: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 12%): $12 million.
net cash flow received by fixed payer: NIL.
End of yr 2: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 16%): $16 million.
net cash flow received by fixed payer: $4 million.
End of yr 3: fixed pays ($100million * 12%): $12 million; Variable pays ($100million * 9%): $9 million. net cash flow received by variable payer: $3 million.
NEW QUESTION: 2
What is the most important reason for applying segregation of duties?
A. Segregation of duties ensures that, when a person is absent, it can be investigated whether he or she has been committing fraud.
B. Segregation of duties makes it easier for a person who is ready with his or her part of the work to take time off or to take over the work of another person.
C. Segregation of duties makes it clear who is responsible for what.
D. Tasks and responsibilities must be separated in order to minimize the opportunities for business assets to be misused or changed, whether the change be unauthorized or unintentional.
Answer: D
NEW QUESTION: 3
A. Option A
B. Option C
C. Option D
D. Option B
Answer: B
Explanation:
Name resolution policy needs to be configured in group policy. "In both example 1 and example 2, validation is not required for the secure.contoso.com zone because the Name Resolution Policy Table (NRPT) is not configured to require validation." https://technet.microsoft.com/en-us/library/jj200221.aspx