A bond pays a coupon of R15 every 6 months and has a term of 10 years, at which time it will be redeemed at R100. The next coupon is due in 6 months’ time. The interest rate is 6% per 6 months. Calculate the price you would be willing to pay for this bond.

Solution :PV = R15 × 1 − 1.06−20 0.06 + R100v^20

= R172.05 + R31.18

= R203.23

Can someone please explain why the 6% interest rate that's payable per 6 months was used to calculate PV of the redemption value