(Solved): The fgure to the right depicts the bond market. Show what wit happen to interest rates if prices in ...

The fgure to the right depicts the bond market. Show what wit happen to interest rates if prices in the bond markat become more volakle. 1. Using the line drawing fool, show the ellect of this shock on the boed market. Propery label your life. 2. Using the point drawing tool, indicate the new equibbum bond price and quantity, Label the point \( 2 ? \) Caresully follow the instructons above, and only draw the required ob;ects. The effect of this shock will lkety cause bond ylelss to The foure to the right decicts the tond market. Show what will happen to interest rates if prices in Bee bond maket become more volatle. 1. Using the ine drawing tool, show the eneect of this shock on the bond murhet. Procety label yourlinh. 2. Vaing the point drawing foot, insicate the new equilbrum bond price and quanthy Label the point '2". Carenily follow the instyebions acove, and osly draw the requent obyects The effect of this shock will likely cause bond yleids to