Consider three government bonds, each with face value $$1000.$ At time t the

one$-$year T$-$Bill sells for $$950$ and the two year T$-$Bill sells for $$900.$ At time t the YTM on a

two$-$year coupon bond is $8\%$; this bond pays an annual coupon of $$100.$

$($a$)$ Is the price of the coupon bond greater than, equal to$,$ or less than $$1000?$ Briefly,

explain your reasoning or show your calculations.

$($b$)$ Of the three bonds which bond has the highest yield to maturity?

After one year, at time t$+1,$ the two$-$year T$-$Bill sells for $$950.$

$($c$)$ Find the rate or return on this T$-$Bill over the first year $($i$.$e$.$ from t to t$+1)$