On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 1 3 7 B 9 0 OHNM4 1 2 13 14 IC a) $500,000 15 Required: 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 botto this worksheet). Note: Rounding is not required. b) 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: = Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: =Bond Selling Price: 9% $17,500 133,500.01 285,055.55 418,555.56 6.00% $17,500 205,993.38 5343,007.72 $549,001.10 +
On January 1, Ruiz Company issued bonds as follows: Face Value: Number of Years: Stated Interest Rate: Interest payments per year 1 3 7 B 9 0 OHNM4 1 2 13 14 IC a) $500,000 15 Required: 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 botto this worksheet). Note: Rounding is not required. b) 7% 2 Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: = Bond Selling Price: Annual Market Rate Semiannual Interest Payment: PV of Face Value: +PV of Interest Payments: =Bond Selling Price: 9% $17,500 133,500.01 285,055.55 418,555.56 6.00% $17,500 205,993.38 5343,007.72 $549,001.10 +
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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Transcribed Image Text:5
On January 1, Ruiz Company issued bonds as follows:
Face Value:
Number of Years:
Stated Interest Rate:
Interest payments per year
7
B
9
0
1
2
AWN
IC
$500,000
a)
Required:
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 botto
this worksheet).
Note: Rounding is not required.
15
7%
2
Annual Market Rate
Semiannual Interest Payment:
PV of Face Value:
+PV of Interest Payments:
Bond Selling Price:
Annual Market Rate
Semiannual Interest Payment:
PV of Face Value:
+PV of Interest Payments:
= Bond Selling Price:
9%
$17,500
133,500.01
285,055.55
418,555.56
6.00%
$17,500
205,993.38
5343,007.72
$549,001.10
+
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