Determine the Average Rate of Change for the Function $$f ( x ) = \frac { 2 } { 5 } x + 2$$

question 13

Multiple Choice

Determine the average rate of change for the function.
- $$f ( x ) = \frac { 2 } { 5 } x + 2$$

• A) \(\frac { 2 } { 5 }\)
• B) 2
• C) \(- \frac { 2 } { 5 }\)
• D) \(- 2\)

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Definitions:

Callable

A term describing a financial security (e.g., a bond) that can be redeemed by the issuer before its maturity date at a predetermined price.

Call Premium

The extra amount that must be paid by the issuer to call a bond before its maturity date, above its par value.

Required Rate

The minimum rate of return on an investment that is necessary for it to be considered a viable option by investors or managers.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, accounting for its current market price, face value, interest payments, and time to maturity.