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1 On January 1, Ruiz Company issued bonds as follows: 2 Face Value: 3 Number of Years: 4 Stated Interest Rate: 5 Interest payments per
1 On January 1, Ruiz Company issued bonds as follows: 2 Face Value: 3 Number of Years: 4 Stated Interest Rate: 5 Interest payments per year 6 (Note: the bonds pay interest annually.) 500,000 30 7% 8 Required: 91) Given the different market interest rates below, calculate the following items. 0 Calculate the bond selling price USING THE EXCEL PV FUNCTION (fx). Note: Enter all 11 function arguments as cell references 12 13 a) Market Interest Rate: 4 Annual Interest Payment: 15 Bond Selling Price: 16 17 b) Market Interest Rate: 18 Annual Interest Payment: 19 Bond Selling Price: 20 1 2. Use the Excel IF function to answer either "Premium" or "Discount" to the following items. 9% 5.5% 3 The bond in (a) sold at a: 4 The bond in (b) sold at a
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