Question 1. What are the four variables that impact demand for assets by identifying the cause and effect for each as it relates to an increase in quantity demanded?
Question 2. What are the three factors that affect supply in the Bond Market, and how do they correlate to the downward or upward shift of the supply curve?
Question 3. If Wilma borrows $5,000 from her brother (at 5% interest per year) and the loan matures in 10 years, how much will she have to pay annually to pay the loan off in 10 years? How much will she have to pay annually to pay the loan off in four years? (Show all work/calculations /formulas.)
Question 4. What is meant by the term "market equilibrium", and why is this important within the study of supply and demand for Bond Market?
Each question must be at least 200 words with references and the book that I am using is Financial Markets & Institutions by Fredrick S. Mishkin & Stanley G. Eakins