MUST BE ENTERED AS FORMULAS, AND PLEASE SHOW WHAT FORMULAS YOU USED

1. Calculate the price of a bond using tables Bond Pricing - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri IUAAlignment AAlignment Number Conditional Format as Cel Paste Clipboard T. C17 Cells Editing Formatting Table Styles- Font Styles vXf+C3*'Present Value of $1'!126 1 On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 500,000 15 4 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) 13Note: Rounding is not required 14 a) 15 16 17 18 19 20 Annual Market Rate 9% Semiannual Interest Payment: $ PV of Face Value: 17,500.00 S 133,500.0:1 +PV of Interest Payments: Bond Selling Price: 1. Calculate the price of a bond using tables Bond Pricing - Excel Sign In DATA REVIEW VIEW INSERT PAGE LAYOUT FORMULAS FILE HOME . Calibri 11A A A Alignment Number Conditional Format as Cell Cells Editing Paste Formatting TableStyles Styles Font Clipboard ri. , -+C3" 'Present Value of $1' !126 X C17 6.0% Annual Market Rate 21 b) Semiannual Interest Payment PV of Face Value: 23 24 25 26 27 28 2. Use the Excel IF function to answer either "Premium" or "Discount" to the following items +PV of Interest Payments: Bond Selling Price 29 30 31 32 The bond in (a) sold at a The bond in (b) sold at a: 4 3. Use the Excel PV FUNCTION (fx) to verify the selling prices of the bonds 35 a) 36 37 38 b) 39 40 41 9% Annual Market Rate Bond Selling Price 6% Annual Market Rate Bond Selling Price