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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 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.
C. 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.
Answer: C
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
An internal audit activity has made a preliminary determination that a division of the organization has employed improper accounting practices.
Upon being informed,the head of the organization instructs the chief audit executive (CAE) to cease the investigation and to withhold the information from external auditors.
Which course of action should the CAE follow?
A. Inform the external auditors of the findings and the mandate to stop investigating.
B. Report the instruction to the chairperson of the audit committee.
C. Report the communication to the organization's general counsel.
D. Inform the head of the organization that the investigation will continue as planned.
Answer: B

NEW QUESTION: 3
A company has a requirement to create a DynamoDB table. The company's software architect has provided the following CLI command for the DynamoDB table

Which of the following has been taken of from a security perspective from the above command?
Please select:
A. The right throughput has been specified from a security perspective
B. The above command ensures data encryption in transit for the Customer table
C. Since the ID is hashed, it ensures security of the underlying table.
D. The above command ensures data encryption at rest for the Customer table
Answer: D
Explanation:
The above command with the "-sse-specification Enabled=true" parameter ensures that the data for the DynamoDB table is encrypted at rest.
Options A,C and D are all invalid because this command is specifically used to ensure data encryption at rest For more information on DynamoDB encryption, please visit the URL:
https://docs.aws.amazon.com/amazondynamodb/latest/developerguide/encryption.tutorial.html The correct answer is: The above command ensures data encryption at rest for the Customer table

NEW QUESTION: 4
Refer to the topology shown in the exhibit. Which ports will be STP designated ports if all the links are operating at the same bandwidth? (Choose three.)

A. Switch C - Fa0/1
B. Switch B - Fa0/0
C. Switch C - Fa0/0
D. Switch A - Fa0/1
E. Switch B - Fa0/1
F. Switch A - Fa0/0
Answer: B,D,E
Explanation:
Explanation/Reference:
Explanation:
This question is to check the spanning tree election problem.
1. First, select the root bridge, which can be accomplished by comparing the bridge ID, the smallest will be selected. Bridge-id= bridge priority + MAC address. The three switches in the figure all have the default priority, so we should compare the MAC address, it is easy to find that SwitchB is the root bridge.
2. Select the root port on the non-root bridge, which can be completed through comparing root path cost.
The smallest will be selected as the root port.
3. Next, select the Designated Port. First, compare the path cost, if the costs happen to be the same, then compare the BID, still the smallest will be selected. Each link has a DP. Based on the exhibit above, we can find DP on each link. The DP on the link between SwitchA and SwitchC is SwitchA'Fa0/1, because it has the smallest MAC address.