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Garcia Company issues 9.00%, 15-year bonds with a par value of $200,000 and semiannual interest...

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Accounting

Garcia Company issues 9.00%, 15-year bonds with a par value of $200,000 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. 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.)

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