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 the Present Value Tables. Use the information included in the Excel

Simulation and the Excel functions described below 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

cell, "=C3" was entered, the formula would output the result from cell C3. or $500.000 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 cell 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

Sheet1 tab "= Future Value of $11C13" was entered, 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, if in a blank cell =C4+C6" was entered, the formula would add the values from those cells and output the

result, or 31 in this example. If 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 syntax of the IF function is "=IF(test_ condition,value_ if_ true value_if false)" and specific considerations need to be made

when using this function. 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 another number or cell. The value if true and value if false arguments wil return any

specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being

used in the test condition. value if true, or value_if false arguments then 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 the Excel Simulation below, if in a blank cell

"-IF(C3>250000, Cash is great", "Cash is bad") was entered, the formula would output the result of the value if true since the

test condition would be result as true, or in this case the text "Cash is great". Excel processes the IF function by separating it out

into separate parts. First the test_ condition - Excel thinks, find cell C3 and determine if the value is greater than 250000. Once

Excel determines if the result of that test condition is TRUE or FALSE, it will return the value if true or value if false.

m 2 Extra Credits ? Bond Pricing - Excel X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calibri -11 A A M Paste Cells %6 Alignment Number Conditional Formatas Cel Formatting Table Styles Styles BIU-- A Editing Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A18 X fo + A B > C D E 15 16 Annual Interest Payment: S 35,000.00 17 PV of Face Value: 18 + PV of Interest Payments: 19 = Bond Selling Price: 20 21 b) Market Interest Rate: 5.5% 22 23 Annual Interest Payment: 35,000.00 24 PV of Face Value: 25 + pv of Interest Payments: 26 = Bond Selling Price: 27 28 2. Use the Excel IF function to answer either "Premium" or "Discount" to the following items. 29 30 The bond in (a) sold at a: 31 32 The bond in (b) sold at a: 33 34 35 36 ty of $1 Present Value of Annuity of $1 Sheet1 . e LL READY Attempt(s) 100% Hint