i need done on piece of paper with steps

7. Consider a perpetuity that pays $100 a month, forever. An investor pur- chases this with a yield of j12 = 6%. Find: (a) The price the investor paid for the perpetuity. (2 points) (b) Suppose the investor holds the perpetuity for 2 years, and then sells it at the exact same yield of 112 = 6%. What is the effective annual yield of their investment? (2 points)