Suppose a bond is offered for $1000 and pays a coupon of $40 per year for a 5 year term. Which of the following is true?

A. The bond price would increase if the real interest rate is above 4%.

B. Buying this bond for $1000 is a bad deal if the real rate is below 4%.

C. If the real interest rate is 4%, the bond price ($1000) is too high.

D. If the real interest rate is below 4% the bond price should increase.