Below is the Demand and Supply Curves for $250,000 bonds that mature in 18 years: Qd=400,000 - 2(P) Qs=3(P) - 100,000 1.  The current market price of these bonds? 2.  The current equilibrium interest rate in that bond market? 3. If the Federal Reserve wished to move the interest rate to 5%, would they need to buy or sell bonds? 4.  In order to achieve the Fed's goal in #3, the bond price would need to change to what?

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Q: demand for bonds

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