1. Explain the Eurodollar Market impact on the global financial system. (Approx 300 wrodings)

2. Explain the term structure of bonds using the answers to the above questions.

(The photo below is my working and answer for 3 different bonds, please help me to explain details on this question)

(A) When Market rate= Coupon rate, 6% # The bond price will be $1000. When 6%: n 1 2 3 4 5 6 7 8 9 10 2 3 4 5 6 7 8 9 Int 10 60 60 60 60 60 60 60 60 60 60 (B) When Market rate=4% # The bond price will be $1162.22 When 4%: 1 Int 60 60 60 60 60 60 MV 60 60 60 60 PVIF 01/1.06 01/1.06/2 01/1.06 3 0 1/1.064 01/1.06 5 0.74726 44.8355 01/1.066 0.70496 42.2976 01/1.06 7 0.66506 39.9034 0 1/1.06/8 0.62741 37.6447 01/1.06/9 0.5919 35.5139 1000 1/1.06/1C 0.55839 33.5037 558.395 MV PVIF 01/1.04 0 1/1.04 2 0 1/1.04 3. PVIF PV-INT PV-MV 0.9434 56.6038 0.89 53.3998 0.83962 50.3772 0.79209 47.5256 0 0 0 0 0 0 1/1.048 0 1/1.049 1000 1/1.04 10 0 0 0 0 441.605 558.395 1000 PVIF PV-INT PV-MV 0.96154 57.6923 0.92456 55.4734 0.889 53.3398 0.8548 51.2883 0 0 0 0 0 0 0 0 0 01/1.044 01/1.045 0.82193 49.3156 01/1.046 0.79031 47.4189 01/1.04 7 0.75992 45.5951 0.73069 43.8414 0.70259 42.1552 0.67556 40.5339 675.564 486.654 675.564 1162.22