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Question 1: Are following statements TRUE FALSE? Ghe brief explanations (3 points in total, each weight 0.75 point) 1.1. The lemon problems in the used

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Question 1: Are following statements TRUE FALSE? Ghe brief explanations (3 points in total, each weight 0.75 point) 1.1. The lemon problems in the used car markets can be a good example of how we face with symetrie information 1.2. When the yield cunhas mound shape the short term interest rates is expected to rise in the future 1.3. Assume that you borrow $2000 antal interest to finance a new business projet. For this can to be profitable, the minimum amount this project most generate in anul camings is $199. 14. Commercial banks play an important role in the initial public offering of a firm as they acts as underwriters Questi (points) Comider a bond with a pond we value of $1,000 Hend Year to Yild to Current Maturity Maturity Prike 10 Calestate the price of these bonds, I fou pay the end olders in seminaari show the calculation What is the gap between bond and bad show the calculation Oeste (2.5 points) Analysis bow a commercial lank can manage the liquidity risk. Csing appropriate examples explain your awer Questi : (2.5 points) Explain why the rest rates of mutical bonds in different from that of government bonde? . Explain why interest rates on bonds of different maturities mwe together over time and the yield curves almost always sopeupe? Deaw figures if needed

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