A computer() two parts: the software and hardware.

Section B – TWO questions ONLY to be attempted

GNT Co is considering an investment in one of two corporate bonds. Both bonds have a par value of $1,000 and pay coupon interest on an annual basis. The market price of the first bond is $1,079？68. Its coupon rate is 6% and it is due to be redeemed at par in five years. The second bond is about to be issued with a coupon rate of 4% and will also be redeemable at par in five years. Both bonds are expected to have the same gross redemption yields (yields to maturity).

GNT Co considers duration of the bond to be a key factor when making decisions on which bond to invest.

Required:

(a) Estimate the Macaulay duration of the two bonds GNT Co is considering for investment. (9 marks)

(b) Discuss how useful duration is as a measure of the sensitivity of a bond price to changes in interest rates. (8 marks)

vestment risk for an investor holding the bonds to maturity is greatestfor the bond that is:

A.a coupon bond selling at a discount to par as a result of market yields increasing after the bond was issued.

B.a zero-coupon bond.

C.a coupon bond selling at a premium to par.

first issue has 15 years to maturity and an annual coupon of 6%. The second issue has the same yield to maturity as the first one, pays annual interest as well, but has only 5 years remaining till maturity. The annual interest payment on the second issue is closest to:

A. $25.23.

B. $27.83.

C. $29.46.

ne year ago. The YTM (semiannually compounding) was 6.0%. Now one year later, with market rates remaining the same, Zheng purchases an annuity with a semiannual payment of $30 for 15 years. Which of the following gives the closest combined value of the two investments based on the 6% semiannual yield？

A. $1,000.

B. $27.83.

C. $29.46.

Computer(75)is a complex consisting of two or moreconnected computing units， it is used for the purpose of data communication and resource sharing．

A．storage

B．device

C．network

D．processor

Computer(75)is a complex consisting of two or more connected computing units，it iS used for the purpose of data communication and resource Sharing．

A．storage

B．device

C．network

D．processor

A.Multi-tasking

B.Hyper-threading

C.Hyper-caching

D.Caching

the one hand, it is considered an economic resource, somewhat on par with other resources such as labour, material, and capital. This view stems from evidence that the possession, manipulation, and use of information can increase the cost-effectiveness of many physical and cognitive processes. The rise in information-processing activities in industrial manufacturing as well as in human problem solving has been remarkable. Analysis of one of the three traditional divisions of the economy, the service sector, shows a sharp increase in information-intensive activities since the beginning of the 20th century. By 1975 these activities accounted for half of the labour force of the United States, giving rise to the so-called information society.

As an individual and societal resource, information has some interesting characteristics that separate it from the traditional notions of economic resources. Unlike other resources, information is expansive, with limits apparently imposed only by time and human cognitive capabilities. Its expansiveness is attributable to the following: (1) it is naturally diffusive; (2) it reproduces rather than being consumed through use; and (3) it can' be shared only, not exchanged in transactions. At the same time, information is compressible, both syntactically and semantically.

The second perception of information is that it is an economic commodity, which helps to stimulate the worldwide growth of a new segment of national economies-the information service sector. Taking advantage of the properties of information and building on the perception of its individual and societal utility and value, this sector provides a broad range of information products and services. By 1992 the market share of the U.S. information service sector had grown to about $ 25 billion. This was equivalent to about one-seventh of the country's computer market, which, in turn, represented roughly 40 percent of the global market in computers in that year. However, the probable convergence of computers and television (which constitutes a market share 100 times larger than computers) and its impact on information services, entertainment, and education are likely to restructure the respective market shares of the information industry before the onset of the 21st century.

The first paragraph is mainly about ______.

A．the remarkable rise in information-processing activities

B．a sharp increase in information-intensive activities

C．information as an economic resource

D．the birth of information society

A.Twice a week

B.Wednesday

C.Two hours, mayb

D.Of course