4.7 Par yield The par yield(面值收益率) for a certain maturity is the coupon rate that causes the bond price to equal its face value(ie. The principal). The bond is usually assumed to provide semIannual coupons In our example we solve 0.05×0.5 0.058×1.0 0.064×1.5 +一e +100+ 0.068×2.0 100 to get c=6.87 Tang Yincai, C 2003, Shanghai Normal University4.7 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Par Yield • The par yield (面值收益率) for a certain maturity is the coupon rate that causes the bond price to equal its face value (ie. The principal). The bond is usually assumed to provide semiannual coupons. • In our example we solve c e c e c e c e c= . 2 2 2 100 2 100 687 0 05 0 5 0 058 1 0 0 064 1 5 0 068 2 0 −  −  −  −  + + + +       = . . . . . . . . to get