TOM Company issues 8%, 10-year bonds with a par value of $350,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 .

complete:

Par value selling price

______________ __________________

cash flow table value present value

350,000 par (maturity) value ____________________

14,000 interest payment ______________ __________________________

Price of bond _____________________________