2. [6 marks] When an investor purchases a 'coupon bond' for a price of $P they will receive periodic payments over the term of the investment in order to recoup the investment plus interest. Suppose that an investor purchased a two-year Bell Canada bond for $P and they received periodic payments of $40 after year 1 and $1040 after year 2. Using compound interest, the purchase price of the bond is then P(y) = 1ty + (1ty), 1040 where y _ 0 represents the annual interest rate earned on the investment. (a) Determine whether P(y) is an increasing or decreasing function. Be sure to include all necessary steps and include a concluding statement in the context of this question. (b) If P(y) = 980, determine the interest rate y. Express your result to 4 decimal points and be sure to include a concluding statement. [Hint: use substitution z = ], and the quadratic formula.]