A bond has a face value of $\text{ ₹1000}$ matures in 5 years, coupon rate is 4% p.a. with interest paid semi-annually. If the bond is priced to yield 6% p.a., the present value of the bond is (Given $\left.(1.03{)}^{-10}=0.7441\right)$

Given, $\mathrm{F}=₹1000,r=\frac{4}{2}\mathrm{\%}$ per half year

= 2% per half year

N = 5 x 2 = 10 half years, $d=\frac{6}{2}\mathrm{\%}=3\mathrm{\%}$ per half year

$\begin{array}{l}\Rightarrow i=\frac{3}{100}=0.03,\\ \mathrm{C}=\mathrm{F}\times \frac{r}{100}=1000\times \frac{2}{100}=₹20\end{array}$

So, $\text{ P.V. }=\frac{20\left[1-(1.03{)}^{-10}\right]}{0.03}+1000(1.03{)}^{-10}$

$\begin{array}{l}=\frac{30\times 0.2559}{0.03}+1000\times 0.7441\\ =170.6+744.10=₹914.70\end{array}$

$\therefore$ Option (d) is the correct answer.