Question: Explain how interest rates equate yield to maturity. 2. Discuss the term structure of interest rates. 3. Are there any common trends in short and

Explain how interest rates equate yield to maturity. 2. Discuss the term structure of interest rates. 3. Are there any common trends in short and long-term rates? 4. What are the key features that dictate the risk structure of interest rates? 5. What is risk premium, and how does it impact cost of funds? 6. Explain with the help of the Bd-Bs and IS-LM graphs the workings of the bonds and money market. 7. Discuss how an increase in money supply will promote/not promote economic activity on the short/long run. 8. What is OPR, and how is it tied to the minimum lending rate. 9. How does excess liquidity in the banking system impact the OPR. 10. With the help of Md and Ms graphs, explain how an expansionary monetary policy could impact the money market equilibrium

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