Suppose $\lim_{n\to\infty}x_n = 0$ and the sequence $\{y_n\}_{n=1}^\infty$ is bounded.
Using the formal definition of limit, show that
$$\lim_{n\to\infty}x_ny_n = 0$$
Not sure what is the meaning of the sequence being bounded and how to use the formal definition of limit to show that result.
Replace the sequence $(y_n)$ with a constant sequence $c_n = K, n\in\mathbb N$ where $K>0$ satisfies $\lvert y_n\rvert \leq K, n\in\mathbb N$ (such a $K$ exists, because?). Then it's clear that for every $n\in\mathbb N$ we have $\lvert x_ny_n\rvert\leq \lvert x_nK \rvert$. We know $x_n\to 0$, so for a fixed $\varepsilon >0$, if $n$ is large enough we have $\lvert x_n\rvert < \varepsilon$.
Now, for $\frac{\varepsilon}{K}>0$ there exists $M\in\mathbb N$ such that for every $n\in\mathbb N$ $$n\geq M \implies \lvert x_ny_n\rvert\leq\lvert x_nK\rvert < \frac{\varepsilon}{K}\cdot K = \varepsilon.$$