1) If a security pays$65inone year and$142in three years a) Find its present value if the interest rate is 10%. b) Given the PV you found in part a if this assets old for $ 160 is the yield to maturity is greater or less than 10%?Why? c) Write down the formula to solve for YTM if the price is$160(you don't need to find YTM just write the equation) . 2) Would it make sense to buy a house when mortgage rates are 12%and expected inflation is 14%?Explain your answer.