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IN DOD IE anL MOLK on the best expugns niciou (apom hon MOLK) juance covenabijou jo spie wageys 14 000 6 16006/24 + 8000 IN

IN DOD IE anL MOLK on the best expugns niciou (apom hon MOLK) juance covenabijou jo spie wageys 14 000 6 16006/24 + 8000 IN BOBL bid 2 (4-0) se on opt coenobou votijou S uestion 4: Bond Prince and Interest Question (20 points) rk. e government offers a $6,000 bond, paying an 8% interest for a period of one year. Show your 9. Calculate the interest income on this bond for this period? 6000. 8 0.8 = 480 b. Calculate the price of this bond if the secondary market if the prevailing interest rate decreased to 5%. Describe the outcome, what is the relationship between bond price and interest rate. raph and show the change in the idealized bond market graph and money market aph for this scenario from part a to b

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