I WILL UPVOTE!!! PLZ WRITE IT DOWN IN CLEAN READABLE HANDWRITING AND EXPLAIN THE ANSWER THOROUGHLY! PLZ DO AT LEAST Q2

1. What is monetary policy? Why does the Monetary Policy Committee (MPC) meet every six weeks? How does the deliberation and decision of the MPC impact the bond market and the valuation of bonds? (not more than 200 words)

2. What is the contribution of the bond rating agencies in the bond market and bond valuation? What was their role in the financial crisis of 2008? Are there any changes in their work and role in the bond market since then? (not more than 200 Words).

3. Bond A has 5 years to mature; Bond B will mature 10 years; Bond C has 20 years. All three pay semi annual coupons of 6 percent and are selling at face value. If the yield of all three bonds goes down to 4 what will be the price of Bonds A, B & C? What will the impact on the price of these bonds if the yield goes up to 8 percent? What conclusions you can draw about the relationship between maturity and bond price sensitivity to interest rate changes? (no word limit).