On January 1, Ruiz Company issued bonds as follows: 2 3 1 Face Amount: $500,000 5 Number of Years: 5 Stated Interest Rate: 30 7% 7 Interest payments per year 2 B Note: The bonds pay interest semiannually. 9 O Required: 1 1) Given the different market interest rates below, calculate the following items. 2 Calculate the bond selling price using the Excel PV function. Enter all function arguments as cell references. 3 4 (Use cells A4 to B7 from the given information to complete this question.) 5 6 a) Market Interest Rate: 9% 7 Semiannual Interest Payment: 8 Bond Selling Price: 9 0 b) Market Interest Rate: 5.50% 1 Semiannual Interest Payment: 2 Bond Selling Price: m 3 4 2. Use the answer either "Premium" or "Discount" to the following items. 5 6 The bond in (a) sold at a: 7 The bond in (b) sold at a: 8 9