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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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
>
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 >
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