Jordan Company purchased ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. One step in calculating the issue price of the bonds is to multiply the principal by the table value for

Question

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The bonds pay interest semiannually, so the number of periods is doubled to 20, and the yield is halved to 4% per period. Therefore, the principal should be multiplied by the table value for 20 periods and 4% from the present value of 1 table.

Jordan Company Purchased Ten-Year, 10% Bonds That Pay Interest Semiannually