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Question You have decided to invest in bond B, an n-year bond with semiannual coupons, with the following characteristics: i) At par Bond (face value=redemption

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Question You have decided to invest in bond B, an n-year bond with semiannual coupons, with the following characteristics: i) At par Bond (face value=redemption amount). ii) The face value of the bond is 1,000. 111) For bond B, the ratio of the semiannual bond rate to the desired semiannual yield rate, (r/i), is 2. iv) The present value of the redemption value of B is 400. Given vn = 4763, what is the price of bond B? Possible Answers A 1,000x+400 773.14x+400 C 1,050x-400 D 773.142 - 400 E 1,050x+400

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