Solution-Derive a linear equation for the demand for bonds

Derive a linear equation for the demand for bonds

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Reference no: EM131127260

Last month, corporations supplied $250 billion in one-year discount bonds to investors at an average market rate of 11.8%. This month, an additional $25 billion in one-year discount bonds became available, and market rates increased to 12.2%.

Assuming that the demand curve remained constant, derive a linear equation for the demand for bonds, using prices instead of interest rates.

Reference no: EM131127260

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Derive a linear equation for the demand for bonds

Reference no: EM131127260

Reference no: EM131127260

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