In other words, it can be said that zero coupon bond is sold at less than the face value of the bond, and there is no payment of interest to the holder of the bond. Therefore, in this 6% yield is adjusted for semiannual payment, so the number of the period will be twice to 10 periods, which is computed by 5*2. Determination of the bond price Formula = M/(1+i)n = 1000/(1+0.03)10 = $744.09 It