Answer this two questions.

10) Use the discounted payback approach to find how long it takes for the following project to payback the initial investment: n= CF's 0 1 -2500 100 2 200 3 300 4 400 5 500 6 600 7 700 8 800 a) 5 years b) 6 years c) 7 years d) 8 years e) None of the above BONUS 11) Suppose you purchased an annual coupon bond four years ago. It has a $1,000 face value and 10-year maturity. When the bond was issued the annual coupon rate was competitively set at 8%. The current interest rate is 12%. What is the current price of the bond today, immediately after the 4th coupon is paid out? a) 740 - 760 b) 760 - 780 c) 780 - 800 d) 800 - 820 e) None of the above