\begin{tabular}{l} \hline On January 1, Ruiz Company issued bonds as follows: \\ \begin{tabular}{l|c|c|} \hline Face Value: & \\ \hline Number of Years: & $500,000 & \\ \hline Stated Interest Rate: & 15 & \\ \hline Interest payments per year & 7% & \\ \hline & & \\ \hline Required: \\ \hline 1) Calculate the bond selling price given the two market interest rates below. \end{tabular} \\ \hline \end{tabular} Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet). Note: Rounding is not required. a) Annual Market Rate Semiannual Interest Payment: PV of Face Value: + PV of Interest Payments: = Bond Selling Price: b) Annual Market Rate Semiannual Interest Payment: PV of Face Value: + PV of Interest Payments: = Bond Selling Price: 2. Use the answer either "Premium" or "Discount" to the following items. The bond in (a) sold at a: The bond in (b) sold at a: 3. Use the Excel PV function to verify the selling prices of the bonds. \begin{tabular}{|l|l|l|l|l|} \hline a) & Annual Market Rate & & \\ \hline & Bond Selling Price & & \\ \hline b) & & & \\ \hline & Annual Market Rate & & \\ \hline & Bond Selling Price & & \\ \hline & & & \\ \hline \end{tabular}