11.0% 10.0% 9.0% 8.0% 7.0% 6.0% Interest Rate (R) 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity of Bonds ($million) Consider Bond Market Graph 1 above. This graph shows demand and supply functions for a hypothetical one-year corporation bond. The vertical axis measures the interest rate on this bond. The face value of this bond is F = $11,448.00. Currently, the market is in equilibrium. Suppose that an economic expansion starts and business firms decide to borrow more than before to invest in plants and equipment. In particular, they now want (willing and able) to borrow $40 million more than before. All else the same, this event will cause the equilibrium interest rate to change to percent. Simultaneously, the price of this bond will change to dollars