Spot price for silver is $154.70 per ton and the 12-month silver futures is traded at $150.00. The 1-year interest rate is 4% (annually compounded). (MUST USE INTEREST IN THE SOLVING PROCESS, THANKS)

i) What is the net convenience yield (annually compound) on silver for the 12 month period?

ii) You need 1,000 tons of silver in 12 months. How would you lock into a price today using the futures contracts? (The size for each silver futures contract is 100 tons.)