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1.) Use the graph to answer the following questions. (20pts) *Assume this is a 1 year bond. Bond Price Discount Bond Market BS 875 x BD Quantity Bonds a. As the bond price rises, what do you expect to happen to the yield-to-maturity (increase or decrease). Fully explain why this is the case. b. If the face value of the bond is $1,100, what is the yield-to-maturity at a bond price of a bond $8757 c. Illustrate the effects of an economic recession in the above bond market by showing the shifts of the BS and BD curves. d. Explain why those shifts occurred and what the outcome of the shifts will be