where 
for example imagine a bond with a par value of 1 000 its yield is 5 its coupon rate is 3 and the bond pays the coupon twice per year over a period of five years given this information there are nine periods for which a 15 coupon payment is made and one period the last one for which a 15 coupon payment is made and the 1 000 principal is repaid using the formula the payments will be as follows these 10 present values equal 912 48 which is the price of the bond 