Answer:
(A) $1,055.35 (B) $2,180.53 (C) $780.07 (D) $412.08.
Explanation:
The tenor of the bond is 27 years i.e. (27 * 2=) 54 periods of 6 months each (n).
Face Value (F) = $1,000
Coupon (C) = 6% annually = 3% semi annually = (3% * 1000 face value) = $30.
The Present Value (PV) of the Bond is computed as follows.
PV of recurring coupon payments + PV of face value at maturity
= 
A) Yield = 5.6% annually = 2.8% semi annually.

= 830.25 + 225.10
= $1,055.35.
B) Yield = 1% annually = 0.5% semi annually.

= 1,416.64 + 763.89
= $2,180.53.
C) Yield = 8% annually = 4% semi annually.

= 659.79 + 120.28
= $780.07.
D) Yield = 15% annually = 7.5% semi annually.

= 391.95 + 20.13
= $412.08.
Answer:
Correct Option is (A) U=min{2B,P}
Explanation:
The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.
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Can totally vary. Normally, it can create 1,000 dollars up to 2,000 dollars if it's a good investment.
Answer: (C) will operate further from its efficient scale.