QS 10-3 Computing bond price P1 Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of87%. Confirm that the bonds' selling price is approximately correct (within $100). Use the present value tables B.1 and B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations.) Par Value x Price 87 1/2 Table Value Selling Price $ 218,750 Present Value 94,225 124,622 $ 218,847 (97) 250,000 Cash Flow $250,000 par (maturity) value $10,000 interest payment Price of Bond Difference due to rounding of table values 0.3769 12.4622