Garcia Company issues 8.00%, 15-year bonds with a par value of $340,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 119 1/2.

Garcia Company issues 8.00%, 15-year bonds with a par value of $340,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 119 112. Confirm that the bonds' selling price is approximately correct. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to nearest whole dollar amount.) x Price 340,000119 1/2 Selling Price 406,300 Present Value Par Value Cash Flow 340,000 par (maturity) value $13,600 interest payment Price of Bond Difference due to rounding of table values Table Value