B 3 Periods 41 5 2 6 3 74 8 5 96 10 7 11 8 12 9 13 10 14 11 15 12 16 13 17 14 18 15 19 16 20 17 21 18 22 19 23 20 24 21 25 25 26 30 27 40 D E F G H I 1 00 1 50 2 00 2 50 3 00 3 50 4 00 1 0000 1,0000 1 0000 1 0000 1 0000 1 0000 1 0000 2 0100 2 0150 2 0200 2 0250 2 0300 2 0350 2 0400 3 0301 3 0452 3 0604 3 0756 3 0909 3 1062 3 1216 4 0604 4 0909 4 1216 4 1525 4 1836 4 2149 4 2465 5 1010 5 1523 5 2040 5 2563 5 3091 5 3625 5 4163 6 1520 6 2296 6 3081 6 3877 6 4684 6 5502 6 6330 7 2135 7 3230 7 4343 7 5474 7 6625 7 7794 7 8983 8 2857 8 4328 8 5830 8 7361 8 8923 9 0517 9 2142 9 3685 9 5593 9 7546 9 9545 10 1591 10 3685 10 5828 10 4622 10 7027 10 9497 11 2034 11 4639 11 7314 12 0061 11 5668 11 8633 12 1687 12 4835 12 8078 13 1420 13 4864 12 6825 13 0412 13 4121 13 7956 14 1920 14 6020 15 0258 13 8093 14 2368 14 6803 15 1404 15 6178 16 1130 16 6268 14 9474 15 4504 15 9739 16 5190 17 0863 17 6770 18 2919 16 0969 16 6821 17 2934 17 9319 18 5989 19 2957 20 0236 17 2579 17 9324 18 6393 19 3802 20 1569 20 9710 21 8245 18 4304 19 2014 20 0121 20 8647 21 7616 22 7050 23 6975 19 6147 20 4894 21 4123 22 3863 23 4144 24 4997 25 6454 20 8109 21 7967 22 8406 23 9460 25 1169 26 3572 27 6712 22 0190 23 1237 24 2974 25 5447 26 8704 28 2797 29 7781 23 2392 24 4705 25 7833 27 1833 28 6765 30 2695 31 9692 28 2432 30 0630 32 0303 34 1578 36 4593 38 9499 41 6459 34 7849 37 5387 40 5681 43 9027 47 5754 51 6227 56 0849 48 8864 54 2679 60 4020 67 4026 75 4013 84 5503 95 0255 nuity of $1 Present Value of Annuity of $1 Sheet J 4 50 1 0000 2 0450 3 1370 4 2782 5 4707 6 7169 8 0192 9 3800 10 8021 12 2882 13 8412 15 4640 17 1599 18 9321 20 7841 22 7193 24 7417 26 8551 29 0636 31 3714 33 7831 44 5652 61 0071 107 0303 K 5 00 1 0000 2 0500 3 1525 4 3101 5 5256 6 8019 8 1420 9 5491 11 0266 12 5779 14 2068 15 9171 17 7130 19 5986 21 5786 23 6575 25 8404 28 1324 30 5390 33 0660 35 7193 47 7271 66 4388 120 7998 L 5 50 1 0000 2 0550 3 1680 4 3423 5 5811 6 8881 8 2669 9 7216 11 2563 12 8754 14 5835 16 3856 18 2868 20 2926 22 4087 24 6411 26 9964 29 4812 32 1027 34 8683 37 7861 51 1526 72 4355 136 6056 M 6 00 1 2 3 4 5 6 8 9 11 13 14, 16 18 21 23 25 28 30 33 36 39 54 79 154 0 3 4 5 6 7 8 9 10 11 2 3 14 15 16 17 18 9 5 00 1 0000 2 0500 3 1525 4 3101 5 5256 6 8019 8 1420 9 5491 11 0266 12 5779 14 2068 15 9171 17 7130 19 5986 21 5786 23 6575 25 8404 28 1324 30 5390 33 0660 35 7193 47 7271 66 4388 120 7998 5 50 1 0000 2 0550 3 1680 4 3423 5 5811 6 8881 8 2669 9 7216 11 2563 12 8754 14 5835 16 3856 18 2868 20 2926 22 4087 24 6411 26 9964 29 4812 32 1027 34 8683 37 7861 51 1526 72 4355 136 6056 M 6 00 1 0000 2 0600 3 1836 4 3746 5 6371 6 9753 8 3938 9 8975 11 4913 13 1808 14 9716 16 8699 18 8821 21 0151 23 2760 25 6725 28 2129 30 9057 33 7600 36 7856 39 9927 54 8645 79 0582 154 7620 N 7 00 1 0000 2 0700 3 2149 4 4399 5 7507 7 1533 8 6540 10 2598 11 9780 13 8164 15 7836 17 8885 20 1406 22 5505 25 1290 27 8881 30 8402 33 9990 37 3790 40 9955 44 8652 63 2490 94 4608 199 6351 8 00 1 0000 2 0800 3 2464 4 5061 5 8666 7 3359 8 9228 10 6366 12 4876 14 4866 16 6455 18 9771 21 4953 24 2149 27 1521 30 3243 33 7502 37 4502 41 4463 45 7620 50 4229 73 1059 113 2832 259 0565 9 00 1 0000 2 0900 3 2781 4 5731 5 9847 7 5233 9 2004 11 0285 13 0210 15 1929 17 5603 20 1407 22 9534 26 0192 29 3609 33 0034 36 9737 41 3013 46 0185 51 1601 56 7645 84 7009 136 3075 337 8824 10 00 1 0000 2 1000 3 3100 4 6410 6 1051 7 7156 9 4872 11 4359 13 5795 15 9374 18 5312 21 3843 24 5227 27 9750 31 7725 35 9497 40 5447 45 5992 51 1591 57 2750 64 0025 98 3471 164 4940 442 5926 R 11 00 1 0000 2 1100 3 3421 4 7097 6 2278 7 9129 9 7833 11 8594 14 1640 16 7220 19 5614 22 7132 26 2116 30 0949 34 4054 39 1899 44 5008 50 3959 56 9395 64 2028 72 2651 114 4133 199 0209 581 8261 12 00 20 00 1 0000 1 0000 2 1200 2 2000 3 3744 3 6400 4 7793 5 3680 6 3528 7 4416 8 1152 9 9299 10 0890 12 9159 12 2997 16 4991 14 7757 20 7989 17 5487 25 9587 20 6546 32 1504 24 1331 39 5805 28 0291 48 4966 32 3926 59 1959 37 2797 72 0351 42 7533 87 4421 48 8837 105 9306 55 7497 128 1167 63 4397 154 7400 72 0524 186 6880 81 6987 225 0256 133 3339 471 9811 241 3327 1181 8816 767 0914 7343 8578 20 21 22 23 24 25 26 27 nuity of $1 Present Value of Annuity of $1 Sheet READY 100 periods 1 2 3 4 5 6 7 8 9 10 11 12 1 00 0 99010 1 97040 2 94099 3 90197 4 85343 5 79548 6 72819 7 65168 8 56602 9 47130 10 36763 11 25508 12 13374 13 00370 13 86505 14 71787 15 56225 16 39827 17 22601 18 04555 18 85698 22 02316 25 80771 32 83469 1 50 0 98522 1 95588 2 91220 3 85438 4 78264 5 69719 6 59821 7 48593 8 36052 9 22218 10 07112 10 90751 11 73153 12 54338 13 34323 14 13126 14 90765 15 67256 16 42617 17 16864 17 90014 20 71961 24 01584 29 91585 2 00 0 98039 1 94156 2 88388 3 80773 4 71346 5 60143 6 47199 7 32548 8 16224 8 98259 9 78685 10 57534 11 34837 12 10625 12 84926 13 57771 14 29187 14 99203 15 67846 16 35143 17 01121 19 52346 22 39646 27 35548 2 50 0 97561 1 92742 2 85602 3 76197 4 64583 5 50813 6 34939 7 17014 7 97087 8 75206 9 51421 10 25776 10 98318 11 69091 12 38138 13 05500 13 71220 14 35336 14 97889 15 58916 16 18455 18 42438 20 93029 25 10278 3 00 0 97087 1 91347 2 82861 3 71710 4 57971 5 41719 6 23028 7 01969 7 78611 8 53020 9 25262 9 95400 10 63496 11 29607 11 93794 12 56110 13 16612 13 75351 14 32380 14 87747 15 41502 17 41315 19 60044 23 11477 3 50 0 96618 1 89969 2 80164 3 67308 4 51505 5 32855 6 11454 6 87396 7 60769 8 31661 9 00155 9 66333 10 30274 10 92052 11 51741 12 09412 12 65132 13 18968 13 70984 14 21240 14 69797 16 48151 18 39205 21 35507 4 00 0 96154 1 88609 2 77509 3 62990 4 45182 5 24214 6 00205 6 73274 7 43533 8 11090 8 76048 9 38507 9 98565 10 56312 11 11839 11 65230 12 16567 12 65930 13 13394 13 59033 14 02916 15 62208 17 29203 19 79277 4 50 0 95694 1 87267 2 74896 3 58753 4 38998 5 15787 5 89270 6 59589 7 26879 7 91272 8 52892 9 11858 9 68285 10 22283 10 73955 11 23402 11 70719 12 15999 12 59329 13 00794 13 40472 14 82821 16 28889 18 40158 13 14 15 16 17 18 19 20 21 25 30 40 ty of $1 Present Value of Annuity of $1 Sheet D 1 2 3 4 5 5 50 0 94787 1 84632 2 69793 3 50515 4 27028 4 99553 5 68297 6 33457 6 95220 7 53763 8 09254 8 61852 9 11708 9 58965 10 03758 10 46216 10 86461 11 24607 11 60765 11 95038 12 27524 13 41393 14 53375 16 04612 6 00 0 94340 1 83339 2 67301 3 46511 4 21236 4 91732 5 58238 6 20979 6 80169 7 36009 7 88687 8 38384 8 85268 9 29498 9 71225 10 10590 10 47726 10 82760 11 15812 11 46992 11 76408 12 78336 13 76483 15 04630 7 00 0 93458 1 80802 2 62432 3 38721 4 10020 4 76654 5 38929 5 97130 6 51523 7 02358 7 49867 7 94269 8 35765 8 74547 9 10791 9 44665 9 76322 10 05909 10 33560 10 59401 10 83553 11 65358 12 40904 13 33171 8 00 0 92593 1 78326 2 57710 3 31213 3 99271 4 62288 5 20637 5 74664 6 24689 6 71008 7 13896 7 53608 7 90378 8 24424 8 55948 8 85137 9 12164 9 37189 9 60360 9 81815 10 01680 10 67478 11 25778 11 92461 9 00 0 91743 1 75911 2 53129 3 23972 3 88965 4 48592 5 03295 5 53482 5 99525 6 41766 6 80519 7 16073 7 48690 7 78615 8 06069 8 31256 8 54363 8 75563 8 95011 9 12855 9 29224 9 82258 10 27365 10 75736 10 00 0 90909 1 73554 2 48685 3 16987 3 79079 4 35526 4 86842 5 33493 5 75902 6 14457 6 49506 6 81369 7 10336 7 36669 7 60608 7 82371 8 02155 8 20141 8 36492 8 51356 8 64869 9 07704 9 42691 9 77905 11 00 0 90090 1 71252 2 44371 3 10245 3 69590 4 23054 4 71220 5 14612 5 53705 5 88923 6 20652 6 49236 6 74987 6 98187 7 19087 7 37916 7 54879 7 70162 7 83929 7 96333 8 07507 8 42174 8 69379 8 95105 12 00 0 89286 1 69005 2 40183 3 03735 3 60478 4 11141 4 56376 4 96764 5 32825 5 65022 5 93770 6 19437 6 42355 6 62817 6 81086 6 97399 7 11963 7 24967 7 36578 7 46944 7 56200 7 84314 8 05518 8 24378 20 00 0 8333 1 5277 2 1064 2 5887 2 9906 3 3255 3 6045 3 8371 4 0309 4 1924 4 3270 4 4392 4 5326 4 6105 4 6754 4 7295 4 7746 4 8121 4 8435 4 8695 4 8913 4 9475 4 9789 4 9966 6 7 8 9 0 1 2 3 4 5 6 7 ty of $1 Present Value of Annuity of $1 Sheet READY 100 A B D E F ( 1 On January 1, Ruiz Company issued bonds as follows 2 3 Face Value $ 500,000 4 Number of Years 15 5 Stated Interest Rate 7 6 Interest payments per year 7 8 9 Required 10 1) Calculate the bond selling price given the two market interest rates below 11 Use formulas that reference data from this worksheet and from the appropriate future or 12 present value tables (found by clicking the tabs at the bottom of this worksheet) 13 Note Rounding is not required 14 a) Annual Market Rate 9 15 16 Semiannual Interest Payment PV of Face Value PV of Interest Payments Bond Selling Price 17 18 19 20 Annual Market Rate 6 0 21 b) 22 Annual Market Rate 6 0 1 b) 2 23 24 25 Semiannual Interest Payment PV of Face Value PV of Interest Payments Bond Selling Price 26 27 8 2 Use the Excel IF function to answer either Premium or Discount to the following items 9 50 The bond in (a) sold at a 1 2 The bond in (b) sold at a 3 4 3 Use the Excel PV FUNCTION (fx) to verify the selling prices of the bonds 55 a) Annual Market Rate 9 6 Bond Selling Price 7 8 b) Annual Market Rate 6 9 Bond Selling Price 0 1 2 3

Question

B 3 Periods 41 5 2 6 3 74 8 5 96 10 7 11 8 12 9 13 10 14 11 15 12 16 13 17 14 18 15 19 16 20 17 21 18 22 19 23 20 24 21 25 25 26 30 27 40 D E F G H I 1 00  1 50  2 00  2 50  3 00  3 50  4 00  1 0000 1,0000 1 0000 1 0000 1 0000 1 0000 1 0000 2 0100 2 0150 2 0200 2 0250 2 0300 2 0350 2 0400 3 0301 3 0452 3 0604 3 0756 3 0909 3 1062 3 1216 4 0604 4 0909 4 1216 4 1525 4 1836 4 2149 4 2465 5 1010 5 1523 5 2040 5 2563 5 3091 5 3625 5 4163 6 1520 6 2296 6 3081 6 3877 6 4684 6 5502 6 6330 7 2135 7 3230 7 4343 7 5474 7 6625 7 7794 7 8983 8 2857 8 4328 8 5830 8 7361 8 8923 9 0517 9 2142 9 3685 9 5593 9 7546 9 9545 10 1591 10 3685 10 5828 10 4622 10 7027 10 9497 11 2034 11 4639 11 7314 12 0061 11 5668 11 8633 12 1687 12 4835 12 8078 13 1420 13 4864 12 6825 13 0412 13 4121 13 7956 14 1920 14 6020 15 0258 13 8093 14 2368 14 6803 15 1404 15 6178 16 1130 16 6268 14 9474 15 4504 15 9739 16 5190 17 0863 17 6770 18 2919 16 0969 16 6821 17 2934 17 9319 18 5989 19 2957 20 0236 17 2579 17 9324 18 6393 19 3802 20 1569 20 9710 21 8245 18 4304 19 2014 20 0121 20 8647 21 7616 22 7050 23 6975 19 6147 20 4894 21 4123 22 3863 23 4144 24 4997 25 6454 20 8109 21 7967 22 8406 23 9460 25 1169 26 3572 27 6712 22 0190 23 1237 24 2974 25 5447 26 8704 28 2797 29 7781 23 2392 24 4705 25 7833 27 1833 28 6765 30 2695 31 9692 28 2432 30 0630 32 0303 34 1578 36 4593 38 9499 41 6459 34 7849 37 5387 40 5681 43 9027 47 5754 51 6227 56 0849 48 8864 54 2679 60 4020 67 4026 75 4013 84 5503 95 0255 nuity of $1 Present Value of Annuity of $1 Sheet J 4 50  1 0000 2 0450 3 1370 4 2782 5 4707 6 7169 8 0192 9 3800 10 8021 12 2882 13 8412 15 4640 17 1599 18 9321 20 7841 22 7193 24 7417 26 8551 29 0636 31 3714 33 7831 44 5652 61 0071 107 0303 K 5 00  1 0000 2 0500 3 1525 4 3101 5 5256 6 8019 8 1420 9 5491 11 0266 12 5779 14 2068 15 9171 17 7130 19 5986 21 5786 23 6575 25 8404 28 1324 30 5390 33 0660 35 7193 47 7271 66 4388 120 7998 L 5 50  1 0000 2 0550 3 1680 4 3423 5 5811 6 8881 8 2669 9 7216 11 2563 12 8754 14 5835 16 3856 18 2868 20 2926 22 4087 24 6411 26 9964 29 4812 32 1027 34 8683 37 7861 51 1526 72 4355 136 6056 M 6 00 1  2 3 4 5  6  8  9  11 13  14, 16  18  21  23 25  28  30 33 36  39 54  79 154    0 3 4 5 6 7 8 9 10 11 2 3 14 15 16 17 18 9 5 00  1 0000 2 0500 3 1525 4 3101 5 5256 6 8019 8 1420 9 5491 11 0266 12 5779 14 2068 15 9171 17 7130 19 5986 21 5786 23 6575 25 8404 28 1324 30 5390 33 0660 35 7193 47 7271 66 4388 120 7998 5 50  1 0000 2 0550 3 1680 4 3423 5 5811 6 8881 8 2669 9 7216 11 2563 12 8754 14 5835 16 3856 18 2868 20 2926 22 4087 24 6411 26 9964 29 4812 32 1027 34 8683 37 7861 51 1526 72 4355 136 6056 M 6 00  1 0000 2 0600 3 1836 4 3746 5 6371 6 9753 8 3938 9 8975 11 4913 13 1808 14 9716 16 8699 18 8821 21 0151 23 2760 25 6725 28 2129 30 9057 33 7600 36 7856 39 9927 54 8645 79 0582 154 7620 N 7 00  1 0000 2 0700 3 2149 4 4399 5 7507 7 1533 8 6540 10 2598 11 9780 13 8164 15 7836 17 8885 20 1406 22 5505 25 1290 27 8881 30 8402 33 9990 37 3790 40 9955 44 8652 63 2490 94 4608 199 6351 8 00  1 0000 2 0800 3 2464 4 5061 5 8666 7 3359 8 9228 10 6366 12 4876 14 4866 16 6455 18 9771 21 4953 24 2149 27 1521 30 3243 33 7502 37 4502 41 4463 45 7620 50 4229 73 1059 113 2832 259 0565 9 00  1 0000 2 0900 3 2781 4 5731 5 9847 7 5233 9 2004 11 0285 13 0210 15 1929 17 5603 20 1407 22 9534 26 0192 29 3609 33 0034 36 9737 41 3013 46 0185 51 1601 56 7645 84 7009 136 3075 337 8824 10 00  1 0000 2 1000 3 3100 4 6410 6 1051 7 7156 9 4872 11 4359 13 5795 15 9374 18 5312 21 3843 24 5227 27 9750 31 7725 35 9497 40 5447 45 5992 51 1591 57 2750 64 0025 98 3471 164 4940 442 5926 R 11 00  1 0000 2 1100 3 3421 4 7097 6 2278 7 9129 9 7833 11 8594 14 1640 16 7220 19 5614 22 7132 26 2116 30 0949 34 4054 39 1899 44 5008 50 3959 56 9395 64 2028 72 2651 114 4133 199 0209 581 8261 12 00  20 00  1 0000 1 0000 2 1200 2 2000 3 3744 3 6400 4 7793 5 3680 6 3528 7 4416 8 1152 9 9299 10 0890 12 9159 12 2997 16 4991 14 7757 20 7989 17 5487 25 9587 20 6546 32 1504 24 1331 39 5805 28 0291 48 4966 32 3926 59 1959 37 2797 72 0351 42 7533 87 4421 48 8837 105 9306 55 7497 128 1167 63 4397 154 7400 72 0524 186 6880 81 6987 225 0256 133 3339 471 9811 241 3327 1181 8816 767 0914 7343 8578 20 21 22 23 24 25 26 27 nuity of $1 Present Value of Annuity of $1 Sheet READY 100  periods 1 2 3 4 5 6 7 8 9 10 11 12 1 00  0 99010 1 97040 2 94099 3 90197 4 85343 5 79548 6 72819 7 65168 8 56602 9 47130 10 36763 11 25508 12 13374 13 00370 13 86505 14 71787 15 56225 16 39827 17 22601 18 04555 18 85698 22 02316 25 80771 32 83469 1 50  0 98522 1 95588 2 91220 3 85438 4 78264 5 69719 6 59821 7 48593 8 36052 9 22218 10 07112 10 90751 11 73153 12 54338 13 34323 14 13126 14 90765 15 67256 16 42617 17 16864 17 90014 20 71961 24 01584 29 91585 2 00  0 98039 1 94156 2 88388 3 80773 4 71346 5 60143 6 47199 7 32548 8 16224 8 98259 9 78685 10 57534 11 34837 12 10625 12 84926 13 57771 14 29187 14 99203 15 67846 16 35143 17 01121 19 52346 22 39646 27 35548 2 50  0 97561 1 92742 2 85602 3 76197 4 64583 5 50813 6 34939 7 17014 7 97087 8 75206 9 51421 10 25776 10 98318 11 69091 12 38138 13 05500 13 71220 14 35336 14 97889 15 58916 16 18455 18 42438 20 93029 25 10278 3 00  0 97087 1 91347 2 82861 3 71710 4 57971 5 41719 6 23028 7 01969 7 78611 8 53020 9 25262 9 95400 10 63496 11 29607 11 93794 12 56110 13 16612 13 75351 14 32380 14 87747 15 41502 17 41315 19 60044 23 11477 3 50  0 96618 1 89969 2 80164 3 67308 4 51505 5 32855 6 11454 6 87396 7 60769 8 31661 9 00155 9 66333 10 30274 10 92052 11 51741 12 09412 12 65132 13 18968 13 70984 14 21240 14 69797 16 48151 18 39205 21 35507 4 00  0 96154 1 88609 2 77509 3 62990 4 45182 5 24214 6 00205 6 73274 7 43533 8 11090 8 76048 9 38507 9 98565 10 56312 11 11839 11 65230 12 16567 12 65930 13 13394 13 59033 14 02916 15 62208 17 29203 19 79277 4 50  0 95694 1 87267 2 74896 3 58753 4 38998 5 15787 5 89270 6 59589 7 26879 7 91272 8 52892 9 11858 9 68285 10 22283 10 73955 11 23402 11 70719 12 15999 12 59329 13 00794 13 40472 14 82821 16 28889 18 40158 13 14 15 16 17 18 19 20 21 25 30 40   ty of $1 Present Value of Annuity of $1 Sheet       D 1 2 3 4 5 5 50  0 94787 1 84632 2 69793 3 50515 4 27028 4 99553 5 68297 6 33457 6 95220 7 53763 8 09254 8 61852 9 11708 9 58965 10 03758 10 46216 10 86461 11 24607 11 60765 11 95038 12 27524 13 41393 14 53375 16 04612 6 00  0 94340 1 83339 2 67301 3 46511 4 21236 4 91732 5 58238 6 20979 6 80169 7 36009 7 88687 8 38384 8 85268 9 29498 9 71225 10 10590 10 47726 10 82760 11 15812 11 46992 11 76408 12 78336 13 76483 15 04630 7 00  0 93458 1 80802 2 62432 3 38721 4 10020 4 76654 5 38929 5 97130 6 51523 7 02358 7 49867 7 94269 8 35765 8 74547 9 10791 9 44665 9 76322 10 05909 10 33560 10 59401 10 83553 11 65358 12 40904 13 33171 8 00  0 92593 1 78326 2 57710 3 31213 3 99271 4 62288 5 20637 5 74664 6 24689 6 71008 7 13896 7 53608 7 90378 8 24424 8 55948 8 85137 9 12164 9 37189 9 60360 9 81815 10 01680 10 67478 11 25778 11 92461 9 00  0 91743 1 75911 2 53129 3 23972 3 88965 4 48592 5 03295 5 53482 5 99525 6 41766 6 80519 7 16073 7 48690 7 78615 8 06069 8 31256 8 54363 8 75563 8 95011 9 12855 9 29224 9 82258 10 27365 10 75736 10 00  0 90909 1 73554 2 48685 3 16987 3 79079 4 35526 4 86842 5 33493 5 75902 6 14457 6 49506 6 81369 7 10336 7 36669 7 60608 7 82371 8 02155 8 20141 8 36492 8 51356 8 64869 9 07704 9 42691 9 77905 11 00  0 90090 1 71252 2 44371 3 10245 3 69590 4 23054 4 71220 5 14612 5 53705 5 88923 6 20652 6 49236 6 74987 6 98187 7 19087 7 37916 7 54879 7 70162 7 83929 7 96333 8 07507 8 42174 8 69379 8 95105 12 00  0 89286 1 69005 2 40183 3 03735 3 60478 4 11141 4 56376 4 96764 5 32825 5 65022 5 93770 6 19437 6 42355 6 62817 6 81086 6 97399 7 11963 7 24967 7 36578 7 46944 7 56200 7 84314 8 05518 8 24378 20 00  0 8333 1 5277 2 1064 2 5887 2 9906 3 3255 3 6045 3 8371 4 0309 4 1924 4 3270 4 4392 4 5326 4 6105 4 6754 4 7295 4 7746 4 8121 4 8435 4 8695 4 8913 4 9475 4 9789 4 9966 6 7 8 9 0 1 2 3 4 5 6 7 ty of $1 Present Value of Annuity of $1 Sheet READY 100  A B D E F ( 1 On January 1, Ruiz Company issued bonds as follows  2 3 Face Value  $ 500,000 4 Number of Years  15 5 Stated Interest Rate  7  6 Interest payments per year 7 8 9 Required  10 1) Calculate the bond selling price given the two market interest rates below  11 Use formulas that reference data from this worksheet and from the appropriate future or 12 present value tables (found by clicking the tabs at the bottom of this worksheet)  13 Note  Rounding is not required  14 a) Annual Market Rate 9  15 16 Semiannual Interest Payment  PV of Face Value    PV of Interest Payments    Bond Selling Price  17 18 19 20 Annual Market Rate 6 0  21 b) 22 Annual Market Rate 6 0   1 b)  2 23 24 25 Semiannual Interest Payment  PV of Face Value    PV of Interest Payments    Bond Selling Price  26 27 8 2  Use the Excel IF function to answer either  Premium  or  Discount  to the following items   9 50 The bond in (a) sold at a    1 2 The bond in (b) sold at a  3 4 3  Use the Excel PV FUNCTION (fx) to verify the selling prices of the bonds  55 a) Annual Market Rate 9  6 Bond Selling Price 7 8 b) Annual Market Rate 6   9 Bond Selling Price  0  1  2  3

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B 3 Periods 41 5 2 6 3 74 8 5 96 10 7 11 8 12 9 13 10 14 11 15 12 16

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