Consider the following scenario: Imagine you are sitting down with your friend who is discussing

the possibility of purchasing a vacant building for a startup printing business. The complexities of

mortgage markets, bond valuation, and risk within the realm of financial institutions and markets

are discussed. Considering his journey into small business ownership, you address the following

concerns: How do you think the ups and downs in bond valuation, especially those tied to

mortgage$-$backed securities$,$ might affect the interest rates he encounters while exploring

mortgage options? What are the potential risks that financial institutions face in managing these

mortgages?

Further, discuss how such risks impact not only the institutions but also influence the availability of

financing for these types of small startup businesses and others in the mortgage market. How

would these financial factors affect your friend's decision$-$making process as a prospective

property owner? What advice would you offer regarding the complexities of mortgage markets,

bond valuation, and risk? Explain.