Suppose you purchase a $2000 bond with a 5% coupon. What is the periodic
2 answers:
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Answer:
Step-by-step explanation:
Equation of a line is given as:
y = mx + b
Where
m is the slope
and
b is the y-intercept (y-axis cutting point)
Since we know slope is -4, we can write:
y= mx + b
y = -4x+ b
Given the point (-2,7) , we can say:
x = -2
and
y = 7
Plugging these 2 values, we can solve for b:
y = -4x + b
7 = -4(-2) + b
7 = 8 + b
b = 7 - 8
b = -1
Now, we have the equation: