Think about the following scenarios. Scenario 1) Inflation is very high and has been that way for several years. The president announces a plan to reduce inflation starting next year. What should happen to the interest rates if the public believes him? What will happen if the public does not believe him? Why would the public’s opinion have (or not have) an impact in interest rates? Scenario 2) During the past year bonds have were traded much more frequently than they had been in the past while to volume of trades in the stock market remained unchanged. How would this impact the interest rate on a bond and why? Scenario 3) The economy is very sluggish and companies having a hard time finding profitable opportunities. How would this impact the interest rate on a bond and why?