In calculating the current price of a bond paying semiannual coupons, one needs to

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All of the above steps need to be done in order to correctly calculate the current price of a bond paying semiannual coupons. Using double the number of years for the number of payments ensures that the correct number of coupon payments are included in the calculation. Using half the annual coupon adjusts for the fact that the coupons are paid semiannually. Using half the annual rate as the discount rate is necessary because the discounting is also done semiannually.

In Calculating the Current Price of a Bond Paying Semiannual