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NEW QUESTION: 1
When attached to an Amazon VPC which two components provide connectivity with external networks?
Choose 2 answers
A. NAT Gateway (NAT)
B. Virtual Private Gateway (VGW)
C. Elastic IPS (EIP)
D. Internet Gateway {IGW)
Answer: B,D
NEW QUESTION: 2
The zero rates for 1, 2 and 3 years respectively are 2%, 2.5% and 3% compounded annually. What is the value of an FRA to a bank which will pay 4% on a principal of $10m in year 3?
A. $800.25
B. $732.90
C. None of the above
D. $670.70
Answer: D
Explanation:
Explanation
In this case, we need to determine the value today of an FRA where the bank has to pay 4% from year 2 to 3 in exchange for the then prevailing LIBOR. We do this by using the forward rate from year 2 to 3, and comparing it to the fixed rate. The forward rate is determined from the zero rates as =(1.03