• Explain the relationship between monetary policy and the internal rate of return to bonds (what it is and how it works). Outline how monetary tightening impacts the internal rate of return to bonds.
• Outline and explain the actual relationship between stock and bond prices over the last 5 years. Start by creating a chart from StockCharts.com using weekly data for the S&P 500 index ($SPX) and Ten-year Bond Prices ($UST). Include annotations in this chart andmake sure that both stock and bond prices are included in the SAME chart. Using this chart, has this relationship acted in the "typical" way, based on theory (from #1) over the last 5 years? Explain your answer.