Question: Need help solving please provide answer and steps thank you 3. Suppose you are given the following data: Md = $Y (0.25 i); and $Y

Need help solving please provide answer and steps thank you

Need help solving please provide answer and steps thank you 3. Suppose

3. Suppose you are given the following data: Md = $Y (0.25 i); and $Y = $100, M3: $20. a Find the equilibrium interest rate. b. If the Fed wants to increase iby ten percentage points, how much should it change M: by? 4. Note: In parts a) and c) show your answers with two numbers after the decimal. a. If a $100 bond maturing in one year sells for 1) $75, ii) $85, and iii) $95 today, what are the respective interest rates or interest yields on this bond? b. Based on your results, what relationship do you observe between price of bonds and its interest yields? 0. At what price of this bond would you get the interest yield of 8%)]

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