The demand curve and supply curve for one-year discount, Business Economics

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The demand curve and supply curve for one-year discount

The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations: Bd : Price = -0.6 Quantity + 1140 Bs : Price = Quantity + 700

a. What is the expected equilibrium price and quantity of bonds in this market?

b. Given your answer to part (a), what is the expected interest rate in this market?

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Business Economics: The demand curve and supply curve for one-year discount

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Business Economics: The demand curve and supply curve for one-year discount

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