Bond Pricing Using Tables 1. Calculate the price of a bond using tables. Bond Pricing - Excel ? 5 FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri - 11 A Paste BI U 3 % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font C16 X fic D E F B 1 On January 1, Ruiz Company issued bonds as follows: 2. 3 $ 4 Face Value: Number of Years: Stated Interest Rate: Interest payments per year 500,000 151 7% 2 5 6 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. Annual Market Rate 9% 14 a) 15 16 17 Semiannual Interest Payment: PV of Face Value: + PV of Interest Payments: = Bond Selling Price: 18 19 20 20 21 b) 24 Annual Market Rate 6.0% 22 23 Semiannual Interest Payment: PV of Face Value: 25 + PV of Interest Payments: = Bond Selling Price: 27 28 2. Use the Excel IF function to answer either "Premium" or "Discount" to the following items. 26 29 30 The bond in (a) sold at a: 31 32 The bond in (b) sold at a: 33 35 a) 9% 36 34 3. Use the Excel PV FUNCTION (fx) to verify the selling prices of the bonds. Annual Market Rate Bond Selling Price 37 38 b) Annual Market Rate 6% Bond Selling Price 39 40 41 42 ... y of $1 Present Value of Annuity of $1 Sheet1