3. This question refers to various classes of assets, which we discussed during the lectures. Briefly respond in 2-3 sentences. (a) A $1,000 face value bond with a 20% coupon rate is sold for $500. What is the yield? (5%) (b) Why do long-term bonds typically have higher yields than short-term bonds? (5%) (c) Suppose that you expect cost-push inflation, driven by increases in commodity prices. What asset is profitable to hold, and why? (5%) (d) Suppose that you expect deflation. What asset is profitable to hold, and why? (5%) (e) You expect demand-pull inflation, driven by loose central bank policy. What asset is profitable to hold, and why? (5%) (f) Suppose that the Bank of Canada engages in loose monetary policy, buying bonds and lowering the overnight rate. However, inflation does not rise in the short-term. Why? (5%) (g) Which type of real estate is uncorrelated to underlying economic conditions? Why? (5%) (h) Satoshi Nakomoto, the founder of Bitcoin (BTC), allegedly owns 1 million BTC. Suppose that he sells all of his BTC tomorrow. What would this do to the price of BTC, and why? (5%)