Example 1: Calculate the current price of a 7.0 % annual coupon bond, with a $1,000 face value which matures in 3 years. Assume a required return of 5.0%. In this case, the first coupon payment is $70 (7.0% of $1,000), the second payment is the same and the third payment is the final payment: a coupon of $70 plus the face value $1,000