1 Harris Corp has a project with initial investment requiring $-150,000 and the following cash flows will be generated because of the project: $37,500; $43,000; $60,000; and $43,000 respectively at the end of each year for the next four years. If the required rate of return is 0.06, find the Profitability Index (PI) of the project.

2 Masco Corp issues a 6 percent coupon bond with 11 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 8 percent, find the bond's price.