Garcia Company issues 9.00%, 15-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 108 3/5.

Chapter 14 - Homework i Saved Help Save & Exit Submit Check my work QS 14-5A Computing bond price LO C2 1.42 points Garcia Company issues 9.00%, 15-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 108 3/5. eBook 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.) Print = = Selling Price $ 325,800 Present Value Par Value x Price 300,000 108 3/5 Cash Flow Table Value $300,000 par (maturity) value $13,500 interest payment Price of Bond Difference due to rounding of table values $ 325,800