Pippen Co.purchased ten-year, 10% bonds that pay interest semi-annually.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

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The bonds pay interest semi-annually, so the number of periods is 20 (10 years x 2) and the yield per period is 4% (8% annual yield / 2).

Pippen CoPurchased Ten-Year, 10% Bonds That Pay Interest Semi-Annually