Two vehicles, a bus and a matatu, are traveling towards each other on a straight road connecting towns A and B, which are 840 km apart. The bus starts from town A at 11:45 a.m. traveling at a speed of

Time to meet = Remaining distance / Relative speed
Time to meet = $720 \text{ km} / 200 \text{ km/h} = 3.6 \text{ hours}$.
Convert 3.6 hours to hours and minutes: $3 \text{ hours} + (0.6 \times 60) \text{ minutes} = 3 \text{ hours } 36 \text{ minutes}$.
The Matatu started at 1:15 p.m.
Meeting time = 1:15 p.m. + 3 hours 36 minutes = 4:51 p.m.

The time of day when the two vehicles met is $\boxed{\text{4:51 p.m.}}$.

Total time bus traveled = Head start time + Time after Matatu started
Total time bus traveled = $1.5 \text{ hours} + 3.6 \text{ hours} = 5.1 \text{ hours}$.
Distance from town A = Speed of bus $\times$ Total time bus traveled
Distance from town A = $80 \text{ km/h} \times 5.1 \text{ h} = 408 \text{ km}$.

They met $\boxed{\text{408 km}}$ from town A.

Time for Matatu to reach town A = Total distance / Speed of Matatu
Time = $840 \text{ km} / 120 \text{ km/h} = 7 \text{ hours}$.

The Matatu started at 1:15 p.m. and traveled for 7 hours, so it reached town A at 1:15 p.m. + 7 hours = 8:15 p.m.
The bus started at 11:45 a.m.
Total time bus traveled = 8:15 p.m. - 11:45 a.m.
In 24-hour format: 20:15 - 11:45 = 8 hours 30 minutes = 8.5 hours.

Distance covered by bus = Speed of bus $\times$ Total time bus traveled
Distance covered by bus = $80 \text{ km/h} \times 8.5 \text{ h} = 680 \text{ km}$.

The bus started from town A and traveled 680 km towards town B.
The total distance between A and B is 840 km.
Since 680 km < 840 km, the bus had not yet reached town B.
Distance from town B = Total distance - Distance covered by bus
Distance from town B = $840 \text{ km} - 680 \text{ km} = 160 \text{ km}$.

The bus was $\boxed{\text{160 km}}$ outside town B (meaning 160 km away from town B, still approaching it).