How would you adjust the calculation of present value for a bond that pays interest semiannually?

• A. Use the annual interest rate and the number of years without adjustment.
• B. Divide the annual interest rate by 2 and multiply the number of years by 2.
• C. Multiply the annual interest rate by 2 and divide the number of years by 2.
• D. Divide both the annual interest rate and the number of years by 2.

Answer: (B)