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NEW QUESTION: 1
A bond has modified duration 6 and convexity 30. Find the duration-convexity approximation to the percentage change in bond price when its yield increases by 5 basis points
A. 30 basis points fall.
B. 24 basis fall
C. 10 basis point rise
D. 24 basis point rise
NEW QUESTION: 2
Why do large OSPF networks use a hierarchical design? (Choose three.)
A. to confine network instability to single areas of the network
B. to reduce routing overhead
C. to decrease latency by increasing bandwidth
D. to lower costs by replacing routers with distribution layer switches
E. to reduce the complexity of router configuration
F. to speed up convergence
OSPF implements a two-tier hierarchical routing model that uses a core or backbone tier known as area zero (0). Attached to that backbone via area border routers (ABRs) are a number of secondary tier areas. The hierarchical approach is used to achieve the following:
Rapid convergence because of link and/or switch failures
Deterministic traffic recovery
Scalable and manageable routing hierarchy, reduced routing overhead.
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