A bond is made up of its coupons and its face value:
Annuity Future Cash Flow
$\text{Bond Value}= \text{Coupon} \times \left\lbrace \dfrac{1-[1/(1+r)^t]}{R} \right\rbrace + \dfrac{\text{Face Value}}{(1+R)^t}$
A bond matures in 8 years with annual payments of $\$100$. If the interest rate is $5\%$, how much is the bond worth?
$\text{Bond Value}= \text{\$100} \times \left\lbrace \dfrac{1-[1/(1+0.05)^8]}{0.05} \right\rbrace \\ \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space + \dfrac{\text{1,000}}{(1+0.05)^8}$A bond matures in 8 years with annual payments of $\$100$ PAID SEMIANNUALLY. If the interest rate is $5\%$, how much is the bond worth?
Step 1: get semi-annual $R = (1.05)^{1/2}-1 =0.0247$ $\text{Bond Value}= \text{\$50} \times \left\lbrace \dfrac{1-[1/(1+0.0247)^{16}]}{0.0247} \right\rbrace \\ \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space \space + \dfrac{\text{1,000}}{(1+0.0247)^{16}}$$\text{Price}= \text{Coupon} \times \left\lbrace \dfrac{1-[1/(1+YTM)^t]}{YTM} \right\rbrace + \dfrac{\text{Face Value}}{(1+YTM)^t}$