The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. Last month, corporations supplied $250 billion in oneyear discount bonds to investors at an average market rate of 11.8%. This month, an additional $25 billion in one-year discount bonds became available, and market rates increased to 12.2%. Assuming that the demand curve remained constant, derive a linear equation for the demand for bonds, using prices instead of interest rates.
2. An economist has concluded that, near the point of equilibrium, the demand curve and supply curve for one-year discount bonds can be estimated using the following equations:
Bd: Price = -2/5 Quantity + 940
Bs: Price = Quantity + 500
a. What is the expected equilibrium price and quantity of bonds in this market?
b. Given your answer to part (a), which is the expected interest rate in this market?
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â----------- -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------