my pars to issue a bond semiannually on March 31st and September 30th The Controller has asked you to tacite information about the bond assuming two different market interest rates in the Excel Simulation below. The present value factor tables are included in the first four tabs of the Excel Simulation Use the information included in the Excel Simulation and the Excel functions describe now 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 cel --C8 was entered, the formula would output the result from cell C6 or 10 in this example. Multi-Tab Cell Reference: Allows you to refer to data from another cell in a separate tab in the worksheet. When using the multi-tab cell reference, type the equal sign first, then click on the other tab and then click on the cell you want to reference. The syntax of a multi-tab cel reference looks different than a normal cell reference since it includes the tab name surrounded by apostrophes and also an exclamation point before the cell location. From the Excel Simulation below, if in a blank cell on the Sheetl tab -- Future Value of Sric13" was entped, the formula would output the result from cell C13 in the Future Value of $1 tab, or 110462 in this example, Basic Math functions: 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 it a blank cell-C6-C8" was entered the formula would add the values from those cells and output the result or 12 In this example. W using the other math symbols the result would output an appropriate answer for its function . IF function: 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 synt of the IF function is IF(test. condition,value_il_true,value_false)" and specific considerations need to be made when using this functio 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 ana number or cell. The value it true and value_Il_false arguments will return any specific result for each option, such as another cell refere a value, or text. Throughout the entire equation, if text is being used in the test_condition value_true or value_il_false arguments the 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 Excel Simulation below, if in a blank cell"=IF(C6-2,"Long-Term Bond","short-Term Bond") was entered the formula would output the res the value_il_true since the test_condition would be result as true, or in this case the text "Long-Term Bond". Excel processes the IF fun 3 1 The Chestnut Street Company plans to issue $825,000, 10-year bonds that pay 7 percent 2 semiannually on March 31st and September 30th. 3 4 Information relating to this bond is found below: 5 Face Value: $ 825,000 6 Number of Years: 10 7 Stated Interest Rate: 7% un + 00 8 Number of Payments per Year: 20 9 10 Required: 11 Calculate or provide the information requested using a formula or cell reference unless 12 you are instructed to use a specific function: 13 Assume the Market Interest Rate is: 8% 15 How many total payments or periods will this bond pay interest? 17 18 b. When calculating the bond selling price, show the factor from 19 the appropriate future or present value table (found in worksheets 14 1) 16 a. ) Assume the Market Interest Rate is: 6% . When calculating the bond selling price, show the factor from the appropriate future or present value table (found in worksheets included in this workbook) that would be used to calculate the bond interest payments. . Repeat question a. but now use the VLOOKUP function. Your function should reference the result you calculated in question Number 1 letter a.) Your function should look for an exact match to the value used in the Lookup_value argument. . Calculate the amount of interest that will be paid on March 31st. $ 28,875 8. Calculate the value of the interest payments that would be used when determining the bond selling price. 2. Calculate the selling price of this bond: Using the IF function, show the word "Premium" or "Discount" based on the selling price you calculated in letter e
