The demand curve and the supply curve are estimated to be the same as in problem 4. As the stock market continued to rise, the Federal Reserve felt the need to increase the interest rates. As a result, the new market interest rate increased to 19.65%, but the equilibrium quantity remained unchanged. What are the new demand and supply equations? Assume parallel shifts in the equations.

Data From Problem 4

A bond issued by Toyota has 30 years to maturity with a face value of $1,000. The market's required yield to maturity for a similarly rated debt was 8.5% per annum. The coupon rate is 10.5%. Toyota pays interest to bondholders on a semiannual basis on January, 15 and July, 15. Calculate the price of the bond.:
a. In the following month, due to an unexpected economic downturn, the required yield to maturity for a similarly rated debt decreased to 5%. Calculate the current price of the bond.
b. Should the maturity increase to 35 years, calculate the price of the bond.