Problem: Cainas Cookies issues a $20,000, 8%, 10 years bond that pays interest semi-annually. The market rate is 6%. When calculating the issue price of the bond, what are the number of periods and the interest used? (n=?, i=?)

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Cainas Cookies issues a $20,000, 8%, 10 years bond that pays interest semi-annually. The market rate is 6%. When calculating the issue price of the bond, what are the number of periods and the interest used? (n=?, i=?)

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Our tutors have indicated that to solve this problem you will need to apply the Using Time Value of Money Tables concept. You can view video lessons to learn Using Time Value of Money Tables. Or if you need more Using Time Value of Money Tables practice, you can also practice Using Time Value of Money Tables practice problems.

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Based on our data, we think this problem is relevant for Professor Cainas' class at USF.