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Draw the demand and supply curves for these bonds

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Reference no: EM131486641

Suppose that the demand and supply schedules for bonds that have a face value of $100 and a maturity date one year hence are as follows:

Price ($)Quantity Demanded Quantity Supplied 10006009510050090200400853003008040020075500100706000

1. Draw the demand and supply curves for these bonds, find the equilibrium price, and determine the interest rate.

2. Now suppose the quantity demanded increases by 200 bonds at each price. Draw the new demand curve and find the new equilibrium price. What has happened to the interest rate?

Reference no: EM131486641

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