Using the notation in the text,

m $2,$

$0072$ d e $08694$

$$

$.$ Also

$005050061000651500720$ A e e e e $36935$

The formula in the text gives the par yield as

$7\mathrm{.}0741$

$3\mathrm{.}6935$

$(1001000\mathrm{.}8694)2$

$$

$$

To verify that this is correct, we calculate the value of a bond that pays a coupon of $7\mathrm{.}0741\%$

per year $($that is $3\mathrm{.}5370$ every six months$).$ The value is

$3\mathrm{.}5373\mathrm{.}5373\mathrm{.}537103\mathrm{.}5371000\mathrm{.}050\mathrm{.}50\mathrm{.}061\mathrm{.}00\mathrm{.}0651\mathrm{.}50\mathrm{.}072\mathrm{.}0$

$$

$$

e e e e

verifying that $7\mathrm{.}0741\%$ is the par yield.