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Exam Code: CPST-001

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Simone Girau holds a callable bond and Chi Rigazio holds a putable bond. Which of the following statements about the two investors is TRUE?
A. Both investors calculate the value of the bond held by adding the value of the option to the value of a similar straight bond.
B. Girau's bond has less potential for price appreciation.
C. If yield volatility increases, the value of Rigazio's option will decrease.
D. As the yield volatility increases, the value of both Girau's bond and the underlying option increases.
Answer: B
When a bond has a call provision, the potential for price appreciation is reduced, because the call caps the price of the bond near the call price. Even if interest rates fall considerably, it is unlikely that investors would pay a price that exceeds the call price.
The other statements are false. To calculate the value of a putable bond, it is correct to add the option value to the value of a similar straight bond. However, to calculate the callable bond value, subtract the option value from that of a similar straight bond. As a result, when yield volatility increases (thus increasing the option value), the value of a callable bond decreases and the value of a putable bond increases. A call option does benefit the issuer, but a put option benefits the holder. Embedded options (puts and calls) increase in value when volatility increases.

Your network contains an Active Directory forest named The forest contains a single domain.
All domain controllers run Windows Server 2012 R2.
The domain contains two domain controllers. The domain controllers are configured as shown in the following table.

Active Directory Recycle Bin is enabled.
You discover that a support technician accidentally removed 100 users from an Active Directory group named Group1 an hour ago.
You need to restore the membership of Group1.
What should you do?
A. Perform tombstone reanimation.
B. Recover the items by using Active Directory Recycle Bin.
C. Modify the Recycled attribute of Group1.
D. Perform an authoritative restore.
Answer: B
Active Directory Recycle Bin helps minimize directory service downtime by enhancing your ability to preserve and restore accidentally deleted Active Directory objects without restoring Active Directory data from backups, restarting Active Directory Domain Services (AD DS), or rebooting domain controllers.
When you enable Active Directory Recycle Bin, all link-valued and non-link-valued attributes of the deleted Active Directory objects are preserved and the objects are restored in their entirety to the same consistent logical state that they were in immediately before deletion. For example, restored user accounts automatically regain all group memberships and corresponding access rights that they had immediately before deletion, within and across domains.

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