The demand curve and supply curve for one-year T-bills (with a face value of $78) were estimated using the following equations

Bd: P= 0.04Q + 94

Bs: P= 0.1Q + 10

a) What is the expected quantity of T-bills in the market? [ 2 points]

b) What is the expected equilibrium price and quantity of T-bills in this market? [ 2 points]

c) Given your answer in (a and b), what is the expected interest rate in this market? (1 Marks)