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Garcia Company issues 9.00%, 15-year bonds with a par value of $380000 and semiannual interest payments. On the issue date, the annual market rate for
Garcia Company issues 9.00%, 15-year bonds with a par value of $380000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.00%, which implies a selling price of 12938. Confirm that the bonds' selling price is approximately correct. Use present value Table B1 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 doller amount.) Par Value Selling Price x Price 129 3/8 491,644 380,000 ash Flow Table Value Present Value S380,000 par (maturity) value $17,100 interest payment Price of Bond Difference due to rounding of table values
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