A 5 year bond has semiannual coupons of 10% per annum. The continuously compounding yield is 16%. The bond has a face value of $100. You will be pricing the bond initially, and at future times throughout the life of the bond as it pulls to par at maturity, using the same continuously compounding yield throughout. Since the yield is given with continuous compounding, the usual formulas will not work without changing the yield to the equivalent discrete frequency. Instead, string out the cash flows (each of the coupons separately plus the final redemption value) in the columns of a spreadsheet similar to the one shown here. Each row will compute the bond price at a different point in time:

A B C D E F G H Face Coupon rate Frequency - m Yield 2 Coupon 1 Coupon 2 Coupon 3 Redemption value etc -C3 Time of payment Time of payment Time of payment Time of payment 4 0.5 1 1.5 etc.. your maturity> 10 Time by month Bond value Value Value Value Value 11 0 -sum all cells to the right 12 0.08333 =sum all cells to the right Each cell in the table is the above 13 0.16667 =sum all cells to the right cash flow valued at the time 14 0.25000 in column B for that row. 15 0.33333 If the time of payment is less than 16 etc... the time in column B, the value is zero, 17 otherwise discount the cash flow back to 18 the time given in column B for that row 19