2. Hmm, that's possible, actually, although it requires a few more things to be assumed. Firstly, it couldn't have been built to do so by Professor Yana, because he thought that time travel was just a story about the past, and didn't really believe it was possible. That suggests that neither he nor any of his human compatriots knew how to build time-travel technology. The rocket could only be capable of travelling in time if the Master had started building it himself before he turned himself into the Professor, in such a way that the Professor would never notice it later on. The destination of London in 2007 (or whenever the present day is actually meant to be now in the series) would also only be possible if the Master had planned all along that that is where he would go as soon as he became a Time Lord again.

So, it is possible, but I think a bit unlikely overall.