1. MTV Corporation has 9 percent coupon bonds on the market with a par of $1,000 and 8 years left to maturity. The bonds make semi-annual interest payments. If the market interest rate on these bonds is 8 percent, what is the current bond price?
2. Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow: –$11,900 $3,440 $4,360 $1,700 $0 $1,180.