Bond Pricing
PB = Price of the bond
Ct = interest or coupon payments
T = number of periods to maturity
r = semi-annual discount rate or the semi-annual yield to maturity
Example: Price of 8%, 10-yr. with yield at 6%
Coupon = 4%*1,000 = 40 (Semiannual)
Discount Rate = 3% (Semiannual)
Maturity = 10 years or 20 periods
Par Value = 1,000
