1. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $85. The market requires an interest rate of 6.7% on these bonds. What is the bond's price?

$1,108.74

$770.58

$1,215.14

$987.92

2. Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.

Year	0	1	2	3	4
Cash flows	-$1,400	$400	$400	$400	$400

5.00%

5.10%

5.56%

3.98%