Question
A company issues a 10-year callable bond with a 9%
coupon. After 5 years, market interest rates fall to 6%. What is the most likely action the issuer will take, and why?Solution
A callable bond gives the issuer the right to repay early. If interest rates fall, the issuer can call the bond and issue new bonds at lower rates, reducing interest costs.
I. 24x² - 58x + 23 = 0
II. 20y² + 24y – 65 = 0
Solve both equations I & II and form a new equation III in variable ‘r’ (reduce to lowest possible factor) using roots of equation I and II as per ...
I. 64x2 - 64x + 15 Â = 0 Â Â Â Â
II. 21y2 - 13y + 2Â =0
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 32x + 207 = 0
Equation 2: y² - 51y + 648 = 0
If a and b are the roots of x² + x – 2 = 0, then the quadratic equation in x whose roots are 1/a + 1/b and ab is
In the question, two equations I and II are given. You have to solve both the equations to establish the correct relation between 'p' and 'q' and choose...
I. y/16 = 4/yÂ
II. x3 = (2 ÷ 50) × (2500 ÷ 50) × 42 × (192 ÷ 12)
The equation q2 - 17x + C = 0, has two roots ‘x’ and ‘y’ such that (x – y) = 7. Find an equation which is equal to thrice of the gi...
Solve the quadratic equations and determine the relation between x and y:
Equation 1: 41x² - 191x + 150 = 0
Equation 2: 43y² - 191y + ...
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 24x + 143 = 0
Equation 2: y² - 26y + 165 = 0
