Question: Enviro Company issues 6.50%, 10-year bonds with a par value of $350,000 and semiannual interest payments. On the issue date, the annual market rate for

Enviro Company issues 6.50%, 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 3.50%, which implies a selling price of 125 7/8. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 125 7/8. what are the issuers cash proceeds from issuance of these bonds?

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