Question: please solve it in 10 mins I will thumb you up D Question 12 The Mozambique economy grew at 7% a year for a decade

please solve it in 10 mins I will thumb you up
D Question 12 The Mozambique economy grew at 7% a year for a decade prior to 2014. In 2013 the government sold $850 million bonds through a state owned tuna fishing company with high yields that became known as Tuna Bonds. However, some money went towards buying gunboats instead of fishing ones. Furthermore, the tuna catch fell short of the required haul to make the coupon payments. Beginning in equilibrium, what shock happens when investors learn of the misallocation of fund? What impact will this have on the interest rate of the bonds? D O Positive demand, increase ONegative demand, increase O Positive demand, decrease O Negative supply, increase O Positive supply, decrease O Positive supply, increase O Negative supply, decrease O Negative demand, decrease Question 13 You work for a hedge fund. You suspect that the spread between Russian and American bonds is too large (pus 95 and PRussia-90). You then, O short, short Oshort, buy O buy, short buy, buy U.S. bonds and Russian. 2 pts 2 pts
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