Question: (1) You bought a $1,000 face value Treasury bill maturing in one year at the discount price of $800. Calculate the yield to maturity for

(1) You bought a $1,000 face value Treasury bill maturing in one year at the discount price of $800. Calculate the yield to maturity for this Treasury bill.

(2) You bought a $1,000 face value bond that promises to pay a fixed interest of $50 forever with no redemption date. The purchase price of the bond is $800. Calculate the interest on the bond.

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