1. Let us think of a zero coupon bond with FV $1,000 with maturity of 2 years. The following table shows the supply and demand of bonds at different prices.

FV	Maturity	Price	Interest rate	Demand (quantity in million)	Supply (quantity in million)
1000	2	650		800	100
1000	2	700		600	300
1000	2	750		400	400
1000	2	800		200	600
1000	2	850		50	800
1000	2	900		10	1000

1. Calculate the interest rates of this bond at different prices and fill up the blank cells. (5 points)
2. Do you think there would an excess supply or excess demand of bond at $900? Why? What would happen to the price? (5 points)