A. THE BOND MARKET 1. The United States is the world's largest issuer of debt, followed by the Eurozone, China, and Japan. Why is the US the largest issuer? List three reasons, each followed by a one-or two-sentence justification. 2. Over the past 25 years or so, there has been a secular shift in the ownership of Trea- suries and corporate and foreign) bonds. What player(s) accounted for the lion's share of the shift? Succinctly describe an economic reason behind it. 3. What are some differences between two commonly used measures of inflation: CPI and PCE deflator? If you're an investor or a worker, which one should you care about more? Explain why. You're going to have to search online or elsewhere to answer this question. 4. When reviewing the structure of the bond market we found that a large component of it was mortgage-backed securities (MBSs) in addition to corporate bonds and Trea- suries. MBSs are important but time constraints prevent us from adequately covering them. For this question, answer the following: What are they? Where do they come from and how are they financially structured? Who primarily issues them? Focus on US markets. Why are they used? Investopedia and Wikipedia are useful. Read several sources and condense what you've read to answer the bullets. Be concise. No more than a short paragraph for each bullet