. Explain the following questions.

(9 points) You are given the following key rate durations for a 9% non-callable bond: Key rate duration 0.25 0.03 0. 1 2 0.1 3 0.3 5 0.5 7 0.8 10 X 15 1.7 20 1.5 25 1.3 30 3.1 You are also given the following for the bond: Price $102.00 Effective duration 10.83 (a) (2 points) Calculate the change in the key rate at year 10 which results in a price of $102.60. (b) (4 points) Describe in words how the effective duration and key rate durations would change if: (i) A sinking fund was added to the bond; (ii) A European put option was added to the bond; or (iii) The bond was a 10% callable bond. (c) (3 points) Describe three fixed income strategies that could be used to diversify and reduce the interest-rate sensitivity of a bond portfolio within a defined contribution plan target date fund.price MC ATC demand MR 12 14 16 17 quantity 1. Monopoly market structure (4 points) a. In the figure above what is this monopolist's profit maximizing output price and quantity? b. In the figure above what is this monopolist's profit at the maximizing output price and quantity? c. What would happen to this market in the long run? d. Monopolies are considered to be a market failure due to a net loss to society also known as the dead weight loss. What is the approximate deadweight loss measured in dollars shown on this graph?Question 1: Part A: Suppose that the world is described by the Following model, and that the production function is: a+