When the callable bond is 75 basis points using on-the-run treasuries as benchmark rates,it implies that the nominal speed is 75bp over the treasury benchmark rates.
<h3>What is a bond?</h3>
It should be noted that a callable bond is the debt instrument whee the issuer has the right to return the principal of the investor.
<em>Callable bonds</em> are also known as redeemable bonds and they're paid off before the maturity date of the bond by the issuer.
It gives room for companies to pay off their debt early and then get benefit regarding favorable interests.
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Since the x-intercepts are already given, we can figure out the equation of a line quite easily.
it would be:
(x-4)(x+4)=y
if you want it not in factored form, just distribute the terms. you will get:
x^2-16=y
both are the same thing, just in different forms.
hope this helped!! xx
I would do the work out but it’s a lot of work so heres a picture the work is already done.
