1. Syntex limited decides to issue 20-year bonds with a par value of $1,000 and annual coupon payments at the coupon interest rate of 12%. However, the return on other bonds of similar risk is 15% p.a. at the market. What would be a fair price for these bonds?
2. What is the payback period if the initial investment is $70,000 and the net cash-flows are: Year 1 $25,000 Year 2 $20,000 Year 3 $22,000 Year 4 $10,000 Year 5 $ 5,000