Question: e ) A bond sells for $ 9 0 0 today. It pays $ 9 0 0 next year and $ 4 0 0 two

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)
e) A bond sells for $900 today. It pays $900 next

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