Bond Pricing - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 ' ' % Paste Clipboard C36 BIU 4 A Alignment Number Conditional Format as Formatting Cell Table Styles Cells Editing Font G Styles fx =PV A B D E F 1 On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 2 3 es st 4 5 6 7 8 9 Required: $ 500,000 15 7% 2 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: $ 17,500.00 17 PV of Face Value: $ 133,500.01 18 +PV of Interest Payments: 285,055.55 19 = Bond Selling Price: $ 418,555.56 20 21 b) Annual Market Rate 6.0% 22 23 Semiannual Interest Payment: $ 24 Joy of Face Valua ty of $1 Present Value of Annuity of $1 17,500.00 205.002 20 Sheet1 READY Attempt(s) 1/3 I Sign In < 100% Hint Show Me