On January 1, Ruiz Company issued bonds as follows: Face Amount: Number of Years: Stated Interest Rate: Interest payments per year Required: $500,000 15 7% 2 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet). Note: Rounding is not required. 12 13 a) 10 20 b) 36 b) -2345678922231562222222222222332333333 Annual Market Rate Semiannual Interest Payment: PV of Face Amount: + PV of Interest Payments: Bond Selling Price: 9% Annual Market Rate 6.00% Semiannual Interest Payment: PV of Face Amount: + PV of Interest Payments: Bond Selling Price: 27 2. Use the answer either "Premium" or "Discount" to the following items. 29 The bond in (a) sold at a: 30 The bond in (b) sold at a: 32 3. Use the Excel PV function to verify the selling prices of the bonds. a) Annual Market Rate Bond Selling Price Annual Market Rate Bond Selling Price 9% 6%