SUPPLY AND DEMAND FOR BONDS JAM IMO 1310 MO NO STO price of bonds 5) 07 1300 quantity of bonds (mill) I ( (F-1) P F = Face Value P# Current price of the bond 12. Use the chart above to answer the following questions: b. Estimate the interest rates When price is $800 L. When price is $450 III. When Price is $650 cDescribe the market conditions. Explain whether there's an excess supply/demand, and what are the pressures on price in each situation: Price is $800 II. Price is $450 I. Price is $650 d. Use the chart to describe what happens in the appropriate supply or demand function: Wealth decreases IL Expected Interest rates decrease Il Risk of bonds decreases IV. Profitablity of investment opportunities decreases V. Government deficit increases SUPPLY AND DEMAND FOR BONDS JAM IMO 1310 MO NO STO price of bonds 5) 07 1300 quantity of bonds (mill) I ( (F-1) P F = Face Value P# Current price of the bond 12. Use the chart above to answer the following questions: b. Estimate the interest rates When price is $800 L. When price is $450 III. When Price is $650 cDescribe the market conditions. Explain whether there's an excess supply/demand, and what are the pressures on price in each situation: Price is $800 II. Price is $450 I. Price is $650 d. Use the chart to describe what happens in the appropriate supply or demand function: Wealth decreases IL Expected Interest rates decrease Il Risk of bonds decreases IV. Profitablity of investment opportunities decreases V. Government deficit increases