Annual Interest Payment: PV of Face Value: +PV of Interest Payments: =Bond Selling Price: $ 35,000.00 =C3/(1/C14/C6)^(C4*1) =pv(C14/1,C4*1,C16) 397,263.46 $ Market Interest Rate: 5.5% Annual Interest Payment: PV of Face Value: +PV of Interest Payments: $ 35,000.00 =C3 =Bond Selling Price: $ 609,003.09 . Use the Excel IF function to answer either "Premium" or "Discount" to the following items. The bond in (a) sold at a: Discount The bond in (b) sold at a: =IF(C3
Annual Interest Payment: PV of Face Value: +PV of Interest Payments: =Bond Selling Price: $ 35,000.00 =C3/(1/C14/C6)^(C4*1) =pv(C14/1,C4*1,C16) 397,263.46 $ Market Interest Rate: 5.5% Annual Interest Payment: PV of Face Value: +PV of Interest Payments: $ 35,000.00 =C3 =Bond Selling Price: $ 609,003.09 . Use the Excel IF function to answer either "Premium" or "Discount" to the following items. The bond in (a) sold at a: Discount The bond in (b) sold at a: =IF(C3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Correct my formulas and find missing yellow rows. Also, show the Excel Formulas that you use to find the answer, please.
![15
16
Annual Interest Payment:
35,000.00
=C3/(1/C14/C6)^(C4*1)
=pv(C14/1,C4*1,C16)
397,263.46
$4
17
PV of Face Value:
+PV of Interest Payments:
Bond Selling Price:
18
19
%D
20
21 b)
Market Interest Rate:
5.5%
22
23
Annual Interest Payment:
$
35,000.00
24
PV of Face Value:
+PV of Interest Payments:
=Bond Selling Price:
=C3
25
26
2$
609,003.09
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:
Discount
31
32
The bond in (b) sold at a:
=IF(C3<C26,"Discount","Premium")
33
34
35](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F539331cf-40c0-407a-999c-f895c0ebd2fe%2Fb004b1a5-02e7-4636-a309-21a59204bd84%2Fg7156e_processed.png&w=3840&q=75)
Transcribed Image Text:15
16
Annual Interest Payment:
35,000.00
=C3/(1/C14/C6)^(C4*1)
=pv(C14/1,C4*1,C16)
397,263.46
$4
17
PV of Face Value:
+PV of Interest Payments:
Bond Selling Price:
18
19
%D
20
21 b)
Market Interest Rate:
5.5%
22
23
Annual Interest Payment:
$
35,000.00
24
PV of Face Value:
+PV of Interest Payments:
=Bond Selling Price:
=C3
25
26
2$
609,003.09
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:
Discount
31
32
The bond in (b) sold at a:
=IF(C3<C26,"Discount","Premium")
33
34
35
![FILE
HOIME
IINSERT
PAGE LAY OUT
FORIMULAS
DATA
REVIEW
VIEVV
Sign im
Calibri
11
A A
%
Paste
В I U
Alignment Number
Conditional Format as
Cell
Cells
Editing
Formatting - Table - Styles -
Clipboard
Font
Styles
A1
fe
On January 1, Ruiz Company issued bonds as follows:
A
В
C
D
E
F
Face Value:
Number of Years:
Stated Interest Rate:
Interest payments per year
3
$
500,000
4
30
5
7%
6.
7
(Note: the bonds pay interest annually.)
8
9 Required:
10 1) Calculate the bond selling price given the two market interest rates below.
11 Use formulas that reference data from this worksheet and from the appropriate future or
12 present value tables (found by clicking the tabs at the bottom of this worksheet).
13 Note: Rounding is not required.
14 а)
Market Interest Rate:
9%
15
16
Annual Interest Payment:
$
35,000.00
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F539331cf-40c0-407a-999c-f895c0ebd2fe%2Fb004b1a5-02e7-4636-a309-21a59204bd84%2Fe1r8bjk_processed.png&w=3840&q=75)
Transcribed Image Text:FILE
HOIME
IINSERT
PAGE LAY OUT
FORIMULAS
DATA
REVIEW
VIEVV
Sign im
Calibri
11
A A
%
Paste
В I U
Alignment Number
Conditional Format as
Cell
Cells
Editing
Formatting - Table - Styles -
Clipboard
Font
Styles
A1
fe
On January 1, Ruiz Company issued bonds as follows:
A
В
C
D
E
F
Face Value:
Number of Years:
Stated Interest Rate:
Interest payments per year
3
$
500,000
4
30
5
7%
6.
7
(Note: the bonds pay interest annually.)
8
9 Required:
10 1) Calculate the bond selling price given the two market interest rates below.
11 Use formulas that reference data from this worksheet and from the appropriate future or
12 present value tables (found by clicking the tabs at the bottom of this worksheet).
13 Note: Rounding is not required.
14 а)
Market Interest Rate:
9%
15
16
Annual Interest Payment:
$
35,000.00
>
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education