Calculate the bond selling price given two different market interest rates using Excels Present Value functions.
Bond Pricing using Excel's PV and IF Functions Ruiz Company issued bo nds on January 1 and has provided the relevant information. The Controller has asked you to calculate the bond Use the information included in the Excel Simulation and the selling price given two different market interest rates using Excel's Present Value functions. Excel functions described below to complete the task . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, 82 was entered, the formula would output the result from cell B2, or $500.000 in this example. .Basic Math s: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). (minus sign to subtract). (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell -83+B5- was entered, the formula would add the values from those cells and output the result, or 31 in this example. If using the other math symbols the result would output an appropriate answer for its function PV Function: Allows you to perform the mathematical present value calculation of a value. The syntax of the PV function is -PV rate,nperpmtvitype and results in the total amount that a series of future payments is worth now also known as the present value. The rate argument is the interest rate per period. The mper argument is the total number of payment periods. The pmt argument is the payment made each period that does not change over the life of the investment and this argument must be included if the (v) argument is not included. The (Mjargument ts the future value, or the cash basis to attain after the last payment is made and this argument must be included if the pmt argument is omitted. The [typeJargument is a logical value of O or 1, which indicates when the payments are due where 1 is the payment at the beginning of the period and O, is the payment at the end of the period. Both the [fv) and (type)values are optional to have the formula work, which is why they are surrounded by brackets in the syntax, however, these values would not be entered with brackets in the actual function. For the out the largument from the function Also the omtl and Jfvl.arguments should be enter Efunction: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is "=IF test condition value r true value r_false and specific considerations need to be made when using this function. The test.condition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_if true and value if false arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test condition, value_it true, or value if false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a string of text" instead of another function From the Excel Simulation below if in a blank Cell-F(B2-250000 -Cash is great."Cash is bad") was entered, the formula would output the result of Prey of 1 Next
