Example of 5 year, 9% semi annual bonds

30,000 bonds [$1,000 each face value] are issued on January 1, 2014.
The bonds mature on December 31, 2018.
The stated rate is 9%, and interest is paid semi-annually on June 30 and Dec 31.
The market rate (effective rate) when the bonds are issued is 10%.
Total bond price = 30,000,000 x 0.6139 = 18417000 PRINCIPAL
[factor of 0.6139 is 10 periods at 5% (10% divided by 2, since bond is semi-annual)]
Plus: 30000000 x 9%/2 = 1350000 cash interest paid x 7.7217 = 10424295 pv of interest
[factor of 7.7217 is 10 periods at 5% from the annuity table]
Total bond price = 18417000 + 10424295 = 28841295
28841295 divided by 30,000 bonds = $961.38 per bond ($961, or $962 are OK)
Interest Expense Calculation:
Int Expense Int Paid Discount BV
Issue 1/1/2014 BV BV x 5% in Cash Amortization 28841295
June 30 2014 28841295 1442064.75 1350000 92064.75 28933359.75
Dec 31 2014 28933359.75 1446667.99 1350000 96667.99 29030027.738
June 30 2015 29030027.738 1451501.39 1350000 101501.39 29131529.124
Dec 31 2015 29131529.124 1456576.46 1350000 106576.46 29238105.581
June 30 2016 29238105.581 1461905.28 1350000 111905.28 29350010.86
Dec 31 2016 29350010.86 1467500.54 1350000 117500.54 29467511.403
June 30 2017 29467511.403 1473375.57 1350000 123375.57 29590886.973
Dec 31 2017 29590886.973 1479544.35 1350000 129544.35 29720431.321
June 30 2018 29720431.321 1486021.57 1350000 136021.57 29856452.887
Dec 31 2018 29856452.887 1492822.64 1350000 142822.64 29999275.532

ONE 30000
Amortization of ONE bond Bond Bonds
Int Expense Int Paid Discount BV
Issue 1/1/2014 BV BV x 5% in Cash Amortization 961.38 28841400
June 30 2014 961.38 48.07 45 3.069 964.45 28933470
Dec 31 2014 964.45 48.22 45 3.22245 967.67 29030144
June 30 2015 967.67 48.38 45 3.3835725 971.06 29131651
Dec 31 2015 971.06 48.55 45 3.552751125 974.61 29238233
June 30 2016 974.61 48.73 45 3.7303886813 978.34 29350145
Dec 31 2016 978.34 48.92 45 3.9169081153 982.26 29467652
June 30 2017 982.26 49.11 45 4.1127535211 986.37 29591035
Dec 31 2017 986.37 49.32 45 4.3183911971 990.69 29720586
June 30 2018 990.69 49.53 45 4.534310757 995.22 29856616
Dec 31 2018 995.22 49.76 45 4.7610262948 999.98 29999447
should be 30000000
Notice rounding difference, because of rounding in the PV.

To compute INTEREST EXPENSE for a particular year, for example, 2015,

Interest Expense for 2015 is EITHER $1,451,501.4 + $1,456,576.5 = $2918,482
(or similar number due to rounding)
OR $48.383573 + $48.552751 = $97.281314 x 30,000 bonds = $2,918,494
So any number "around" $2,918490 is OK, (due to rounding; a computer would be exact)
Don't forget that since interest is paid semi-annually, we discount semi-annually as well.
Annual interest expense is BOTH semiannual amounts added together
total bond price 30000000
pv of principal 18417000
pv of interest expense 10424295
pv of total bond price 28841295
pv of each bond 961.3765