Consider a dynamic, two-period model, featuring a representative agent deciding over consumption and savings in a general equilibrium, endowment economy. As we did in class, we will assume there are two types of discount bonds: a risk free bond (B r f t ) and a risky bond (B r t ). All bonds are assumed to be in fixed (zero net) supply. The price of a unit of risky bond (a piece of paper with face value=1) is Pr,t and the price of a unit of risk-free bond (another piece of paper with face value=1) is Pr f ,t