a. [4 points] According to our discussion about the interest-rate risk, please explain how rising interest rates affect bond prices and why long-term bonds are more affected. b. [4 points] Using the demand and supply analysis, please explain how an increase in ination expectations affects bond prices. c. [4 points] Given the high ination and the market uncertainty, investors believe that the central bank will increase interest rates over an extended period. Please explain with the expectations theory_why this implies that long-term bonds perform worse than short-term ones. (Hint: Central banks normally change the short- term interest rates. The price of long-term bonds declining by more implies that their interest rate has increased by more than the short-term interest rates.)