There are several adjustments to make to account for semi-annual rather than annual payments:-divide the discount rate by 2-divide the coupon payment by 2-increase the number of payment periods by a factor of 2all three of these adjustments must be made in order to calculate the semi-annual price of a bond.the text reads: in our examples, we will use a discount rate of 5%, (the coupon rate of 10% divided by 2) to reflect twice-yearly interest payments. this is incorrect since the semi-annual discount rate of 5% comes from dividing the annual discount rate of 10% by 2. youll notice throughout the calculation the discount rate applied is 0.05.