On January 1, Ruiz Company issued bonds as follows: Face Value:$500,000 Number of Years:15 Stated Interest Rate:7% Interest payments per year2 Question: 1) Calculate the bond selling price given the two market interest rates below. Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet).Note: Rounding is not required. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.) a)b)Annual Market RateSemiannual Interest Payment:PV of Face Value:+ PV of Interest Payments:Bond Selling Price:==Annual Market RateSemiannual Interest Payment:PV of Face Value:PV of Interest Payments:Bond Selling Price:9%6.00% 3. Use the Excel PV function to verify the selling prices of the bonds.a)Annual Market RateBond Selling Priceb)Annual Market RateBond Selling Price9%6%

Bond price refers to the price at which the bonds can be bought or sold in the market at specified…

Answered: On January 1, Ruiz Company issued…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, Ruiz Company issued bonds as follows:

Face Value:	$500,000
Number of Years:	15
Stated Interest Rate:	7%
Interest payments per year	2

Question:
1) Calculate the bond selling price given the two market interest rates below.
Use formulas that reference data from this worksheet and from the appropriate future or present value tables (found by clicking the tabs at the bottom of this worksheet).
Note: Rounding is not required. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1.)