Additional Practice Questions 1. Research on the different types of nancial intermediaries, their roles, and their respective sizes (total assets). Compare across three PICS 2. Analyze the impact of a business cycle expansion on the interest rate using (i) the bond market model and (ii) the liquidity preference model You must clearly show the initial points and the impacts. 3. Differentiate between the risk structure of interest rates and the terms structure of interest rates. 4. Use the bond market model to illustrate and explain how differences in default risk result in interest rate differences on bonds with the same years to maturity. 5. Use the bond market model to illustrate and explain how differences in liquidity of bond results in interest rate differences on bonds. 6. Use the bond market model to illustrate and explain how differences in income tax policy on income earned from investment in bonds result in interest rate differences on bonds. Assume one bond has a preferable income tax policy