Explain clearly

5. Assume: PB= $1400 r = 18% and the bond is resold for resold for $1800 then new yield on the bond 6. Assume: yield = 16% Annual Interest payment = $300 then PB =1. When the Federal Reserve enters the bond market and sells bonds, what will happen to bond prices and therefore yields on bonds? 2. When the Federal Reserve enters the bond market and buys bonds, what will happen to bond prices and therefore yields on bonds ? PB- Price of Bond r= Yield on the Bond 3. Assume : PB = $4000 Annual Interest payment - $120 then yield = 4. Assume: PB # $4500 Annual Interest payment # $150 then yield If the bond is resold for $5000 then new yield on the bond HI