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4. The chart below shows the Supply/Demand for bonds. The vertical axis shows the bond prices and the horizontal axls shows the quantity of bonds

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4. The chart below shows the Supply/Demand for bonds. The vertical axis shows the bond prices and the horizontal axls shows the quantity of bonds supplied/demanded in the market. Price of Band 1600 UNO 950 500 REN P. 07 600 25 750 100 200 SO 45 Face ValuePrice Price a. Describe the market situation If Prices are below $830. 1. What is the interest rate at that price? b. Describe the market situation at P=$930 1. What is the interest rate at that price? c. What is the relationship between bond rates and prices? And between coupon rate and interest rate? 4. The chart below shows the Supply/Demand for bonds. The vertical axis shows the bond prices and the horizontal axls shows the quantity of bonds supplied/demanded in the market. Price of Band 1600 UNO 950 500 REN P. 07 600 25 750 100 200 SO 45 Face ValuePrice Price a. Describe the market situation If Prices are below $830. 1. What is the interest rate at that price? b. Describe the market situation at P=$930 1. What is the interest rate at that price? c. What is the relationship between bond rates and prices? And between coupon rate and interest rate

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