A 1 2 On January 1, Ruiz Company issued bonds as follows: 3 4 Face Amount: 5 6 16 a) Market Interest Rate: 17 B Semiannual Interest Payment: Bond Selling Price: Number of Years: Stated Interest Rate: 7 Interest payments per year 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 $500,000 30 7% 2 14 (Use cells A4 to B7 from the given information to complete this question.) 15 Semiannual Interest Payment: Bond Selling Price: 26 The bond in (a) sold at a: 27 The bond in (b) sold at a: 28 C 9% 18 19 20 b) Market Interest Rate: 21 22 23 24 2. Use the answer either "Premium" or "Discount" to the following items. 25 D 5.50% F G H
A 1 2 On January 1, Ruiz Company issued bonds as follows: 3 4 Face Amount: 5 6 16 a) Market Interest Rate: 17 B Semiannual Interest Payment: Bond Selling Price: Number of Years: Stated Interest Rate: 7 Interest payments per year 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 $500,000 30 7% 2 14 (Use cells A4 to B7 from the given information to complete this question.) 15 Semiannual Interest Payment: Bond Selling Price: 26 The bond in (a) sold at a: 27 The bond in (b) sold at a: 28 C 9% 18 19 20 b) Market Interest Rate: 21 22 23 24 2. Use the answer either "Premium" or "Discount" to the following items. 25 D 5.50% F G H
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer all yellow boxes, and show the formulas (work).
Thank you!
Transcribed Image Text:1
~3456
A
Face Amount:
2
On January 1, Ruiz Company issued bonds as follows:
B
Number of Years:
Stated Interest Rate:
7
Interest payments per year
8 Note: The bonds pay interest semiannually.
9
10
11
$500,000
30
7%
2
Required:
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
Semiannual Interest Payment:
Bond Selling Price:
14 (Use cells A4 to B7 from the given information to complete this question.)
15
26 The bond in (a) sold at a:
27 The bond in (b) sold at a:
28
16 a) Market Interest Rate:
17 Semiannual Interest Payment:
18 Bond Selling Price:
19
20 b) Market Interest Rate:
21
22
23
24 2. Use the answer either "Premium" or "Discount" to the following items.
25
C
9%
5.50%
F
G
H
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