The price of a risk-free coupon bearing bond is simply the NPV of its future generated cashflow stream. But given the consistent periodic coupon payments, we can treat the coupons as an annuity and simplify the NPV formula: -mT r m r + F(1 + r)-T Where B is the bond price, F is the face amount, m is the coupon payment frequency, T is the maturity, and interest rate r. Apply this formula to calculate the price of a bond with $1000 face value, maturing in 30 years, paying a semi-annual coupon of 4.5%, assuming a constant risk-free interest rate of 2%