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demand and supply curve for one-year discount bonds with face value of S100 are represented by the following equation: Demand for bonds: Price -0.8*Quantity+ 1,160
demand and supply curve for one-year discount bonds with face value of S100 are represented by the following equation: Demand for bonds: Price -0.8*Quantity+ 1,160 Supply of bonds: Price= Quantity +720 What is the expected equilibrium price? (2%) What is the expected interest rate in this market? (2%)
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