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NEW QUESTION: 1
MediSoft Inc. develops and distributes high-tech medical software used in hospitals and clinics across the United States and Canada. The firm's software provides an integrated solution to monitoring, analyzing, and managing output from a variety of diagnostic medical equipment including MRls, CT scans, and EKG machines. MediSoft has grown rapidly since its inception ten years ago, averaging 25% growth in sales over the last decade. The company went public three years ago. Twelve months after their IPO, MediSoft made two semiannual coupon bond offerings, the first of which was a convertible bond. At the time of issuance, the convertible bond had a coupon rate of 7.25%, par value of $1,000, a conversion price of
$55.56, and ten years until maturity. Two years after issuance, the bond became callable at 102% of par value. Soon after the issuance of the convertible bond, the company issued another series of bonds which were putable, but contained no conversion or call features. The putable bonds were issued with a coupon of 8.0%, par value of $1,000, and 15 years until maturity. One year after their issuance, the put feature of the putable bonds became active, allowing the bonds to be put at a price of 95% of par value, and increasing linearly over five years to 100% of par value. MediSoft's convertible bonds are now trading in the market for a price of $947 with an estimated straight value of $917. The company's putable bonds are trading at a price of $1,052. Volatility in the price of MediSoft's common stock has been relatively high over the last few months. Currently the stock is priced at $50 on the New York Stock Exchange and is expected to continue its annual dividend in the amount of $1.80 per share.
High-tech industry analysts for Brown & Associates, a money management firm specializing in fixed- income investments, have been closely following MediSoft ever since it went public three years ago. In general, portfolio managers at Brown & Associates do not participate in initial offerings of debt investments, preferring instead to see how the issue trades before considering taking a position in the issue. Since MediSoft's bonds have had ample time to trade in the marketplace, analysts and portfolio managers have taken an interest in the company's bonds. At a meeting to discuss the merits of MediSofVs bonds, the following comments were made by various portfolio managers and analysts at Brown & Associates:
"Choosing to invest in MediSoft's convertible bond would benefit our portfolios in many ways, but the primary benefit is the limited downside risk associated with the bond. Since the straight value will provide a floor for the value of the convertible bond, downside risk is limited to the difference between the market price of the bond and the straight value."
"Decreasing volatility in the price of MediSoft's common stock as well as increasing volatility in the level of interest rates are expected in the near future. The combined effects of these changes in volatility will be a decrease in the price of MediSoft's putable bonds and an increase in the price of the convertible bonds.
Therefore, only the convertible bonds would be a suitable purchase."
Under what circumstances will the analyst's comments regarding the limited downside risk of McdiSoft's convertible bonds be accurate?
A. The convertible bond is trading in the market as a common stock equivalent.
B. Short-term and long-term interest rates are expected to remain equivalent.
C. The Federal Reserve Bank decides to pursue a restrictive monetary policy.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
If interest rates are not expected to change then the straight value of the bond will not change (ignoring the change in value resulting from the passage of time). If the straight value docs not change, then downside risk is indeed limited to the difference between the price paid for the bond and the straight value. If, however, interest rates rise as the price of the common stock falls, the conversion value will fall and the straight value will fall, exposing the holder of the convertible bond to more downside risk. (Study Session
14, LOS 54.j)

NEW QUESTION: 2
Which of the following is a valid null hypothesis?
A. The mean of population A is not equal to the mean of population B
B. p > 1/8
C. μ < 98
D. mu = 110
Answer: D

NEW QUESTION: 3
DRAG DROP
You manage an Azure Web Site named contososite.
You download the subscription publishing credentials named Contoso-Enterprise.publishsettings.
You need to use Azure Power Shell to achieve the following:
Which commands should you use? To answer, drag the appropriate Azure PowerShell command to the correct
location in the solution. Each command may be used once, more than once, or not at all. You may need to drag the
split bar between panes or scroll to view content.

Answer:
Explanation:

NEW QUESTION: 4
Which three conditions can cause excessive unicast flooding? (Choose three.)
A. Repeated TCNs
B. Asymmetric routing
C. Frames sent to FFFF.FFFF.FFFF
D. MAC forwarding table overflow
E. The use of HSRP
F. The use of Unicast Reverse Path Forwarding
Answer: A,B,D
Explanation:
Explanation/Reference:
Explanation:
Causes of Flooding
The very cause of flooding is that destination MAC address of the packet is not in the L2 forwarding table of the switch. In this case the packet will be flooded out of all forwarding ports in its VLAN (except the port it was received on). Below case studies display most common reasons for destination MAC address not being known to the switch.
Cause 1: Asymmetric Routing
Large amounts of flooded traffic might saturate low-bandwidth links causing network performance issues or complete connectivity outage to devices connected across such low-bandwidth links.
Cause 2: Spanning-Tree Protocol Topology Changes
Another common issue caused by flooding is Spanning-Tree Protocol (STP) Topology Change Notification (TCN). TCN is designed to correct forwarding tables after the forwarding topology has changed. This is necessary to avoid a connectivity outage, as after a topology change some destinations previously accessible via particular ports might become accessible via different ports. TCN operates by shortening the forwarding table aging time, such that if the address is not relearned, it will age out and flooding will occur.
TCNs are triggered by a port that is transitioning to or from the forwarding state. After the TCN, even if the particular destination MAC address has aged out, flooding should not happen for long in most cases since the address will be relearned. The issue might arise when TCNs are occurring repeatedly with short intervals. The switches will constantly be fast-aging their forwarding tables so flooding will be nearly constant.
Normally, a TCN is rare in a well-configured network. When the port on a switch goes up or down, there is eventually a TCN once the STP state of the port is changing to or from forwarding. When the port is flapping, repetitive TCNs and flooding occurs.
Cause 3: Forwarding Table Overflow
Another possible cause of flooding can be overflow of the switch forwarding table. In this case, new addresses cannot be learned and packets destined to such addresses are flooded until some space becomes available in the forwarding table. New addresses will then be learned. This is possible but rare, since most modern switches have large enough forwarding tables to accommodate MAC addresses for most designs.
Forwarding table exhaustion can also be caused by an attack on the network where one host starts generating frames each sourced with different MAC address. This will tie up all the forwarding table resources. Once the forwarding tables become saturated, other traffic will be flooded because new learning cannot occur. This kind of attack can be detected by examining the switch forwarding table. Most of the MAC addresses will point to the same port or group of ports. Such attacks can be prevented by limiting the number of MAC addresses learned on untrusted ports by using the port security feature.
Reference. http://www.cisco.com/c/en/us/support/docs/switches/catalyst-6000-series- switches/23563-
143.html#causes