The Garcia Company issues an 8.00%, 15-year bond with a face value of $280,000 and semi-annual interest payments. The annual market interest rate of these bonds at the date of issue is 6.00%, which means a selling price of 119 5/9.

Confirm that the selling price of the bonds is approximately correct. Use the existing value in Table B.1 and Table B.3 in Annex B. (Round all table values to 4 decimal places and use rounded table values in calculations. Round your other final answers to the nearest whole dollar amount.)

Nominal value	x Price	=	Sale price
280.000 $	119 5/9	=	334.768 $
Cash flow	Table Value		value today
$280,000 par (term) value
$11,200 interest payment
Bond Price
Difference due to rounding of table values

Answer rating: 100% (QA)

Part value 280000 Cash flow 280000 par maturity val... View the full answer