Par yield o The par yield for a certain maturity is the coupon rate that causes the bond price to equal its face value In our example we solve C-005×05,C-0058×10,C-0064×15 t-e t-e 2 C),-06820=100 +100+e to get c=6.87 (with semiannual compounding) Options, Futures, and other Derivatives 8th Edition Copyright O John C Hull 2012Par Yield The par yield for a certain maturity is the coupon rate that causes the bond price to equal its face value. In our example we solve Options, Futures, and Other Derivatives 8th Edition, Copyright © John C. Hull 2012 16 to get 6 87 (with semiannual compounding) 100 2 100 2 2 2 0 068 2 0 0 05 0 5 0 058 1 0 0 064 1 5 c= . e c e c e c e c  =      + + + + −  −  −  −  . . . . . . .