(10+15+15) marks Question 3 a. Describe the importance of interest rates with a clear example? Explain the relationship between yield to maturity and Bond price using a graph. b. Assume that the US is having a higher inflationary pressure. How can the Federal Reserve of US control inflation, using money demand and money curve.

Question 3 a. Describe the importance of interest rates with a clear example? Explain the relationship between yield to maturity and Bond price using a graph. b. Assume that the US is having a higher inflationary pressure. How can the Federal Reserve of US control inflation, using money demand and money curve