Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide formula answers for all. Ruiz Company issued bonds on January 1 and has provided the relevant information. The Controller has asked you to

please provide formula answers for all.
image text in transcribed
image text in transcribed
image text in transcribed
Ruiz Company issued bonds on January 1 and has provided the relevant information. The Controller has asked you to calculate the bond selling price given two different market interest rates using Excel's Present Value functions. Here are some tips for using Excel: . Cell Reference: Allows you to refer to data from another cell in the worksheet. If you entered -85 into a blank ceil, the formula would output the value from cell BS. Basic Math Functions: Allow 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). For example. If you entered --B4-85* in a blank cell, the formula would add the values from those cells and output the result PV Function: Allows you to perform a present value calculation. The syntax of the PV function is --Piratenpecpmtvlltype)" and its output is 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 nper argument is the total number of payment periods. The pit 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 (IV) argument is not Included. The /tv/argument is the future value, or the cash basis to attain after the last payment is made; this argument must be included if the pit argument is omitted. The (type) argument is a logical value of 0 or 1, which indicates when the payments are due. where 1 is the payment at the beginning of the period and is the payment at the end of the period. Both the land /lype) values are optional arguments to include, which is why they are surrounded by brackets in the syntax. However, these values would not be entered with brackets in the actual function. 1. Use the Open Excel in New Tab button to launch this question 2. When finished in Excel use the Save and Return to Assignment button in the lower right to return to Connect J* B D F G 1 2 On January 1, Ruiz Company issued bonds as follows: 4 Face Value: $500,000 5 Number of Years: 30 6 Stated Interest Rate: 7% 7 Interest payments per year 2 8 Note: The bonds pay interest semiannually. 9 10 Required: 11 1) Given the different market interest rates below.calculate the following items. 12 Calculate the bond selling price using the Excel PV function. Enter all function arguments as cell references. 13 14 (Use cells A4 to B7 from the given information to complete this question.) 15 D20 fo F G C H A H B 10 Required: 11 1) Given the different market interest rates below, calculate the following items. 12 Calculate the bond selling price using the Excel PV function. Enter all function arguments as cell references. 13 14 (Use cells A4 to B7 from the given information to complete this question.) 15 16 a) Market Interest Rate: 9% 17 Semiannual Interest Payment: 18 Bond Selling Price: 19 20 b) Market interest Rate: 5.50% 21 Semiannual Interest Payment: 22 Bond Selling Price: 23 24 2. Use the answer either "Premium" or "Discount" to the following items. 25 26 The bond in (a) sold at a: 27 The bond in (b) sold at a: 28 29 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Today

Authors: Emile Woolf

3rd Edition

013052168X, 9780130521682

More Books

Students also viewed these Accounting questions