Garcia Company issues 10.00%, 15-year bonds with a par value of $420,000 and semiannual interest...
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Accounting
Garcia Company issues 10.00%, 15-year bonds with a par value of $420,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.00%, which implies a selling price of 117 2/7.
Confirm that the bonds selling price is approximately correct (within 0.1%). 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. Round your other final answers to nearest whole dollar amount.)
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