e$)$ A bond sells for $$900$ today. It pays $$900$ next year and $$400$ two years from now.

Calculate the bond's effective yield $(1$ mark $-$ show all work$)$

f$)$ A bond pays $$100$ at the end of each year for four years, and an additional $$1,000$ at

the end of the fourth year. Would you buy the bond for $$1,200$ when The interest rate

is $5\%?(1$ mark$)$