Exercise 5.10. Consider the sequential trading model discussed above and suppose now that individuals can trade bonds at time t that deliver one unit of good 0 at time t0 . Denote the price of such bonds by qt,t0. (1) Rewrite the budget constraint of household h at time t, (5.18), including these bonds. (2) Prove an equivalent of Theorem 5.8 in this environment with the extended set of bonds.