Question: 4. The chart below shows the Supply/Demand for bonds. The vertical axis shows the bond Prices and the horizontal axis shows the quantity of

4. The chart below shows the Supply/Demand for bonds. The vertical axis

4. The chart below shows the Supply/Demand for bonds. The vertical axis shows the bond Prices and the horizontal axis shows the quantity of bonds supplied/demanded in the market. Price of Bonds P (5) 1,000 7013) 950 77632) 900 0-174%) 400 +250) 750 -3535) 100 200 300 Quarry of Bonds, (b) 400 500 a. Face Value-Price Price Describe the market situation if Prices are below $830. 1. What Is the Interest rate at that price? b. Describe the market situation at P-$930 C. 1. What is the interest rate at that price? What is the relationship between bond rates and prices? And between coupon rate and interest rate?

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