  (Abridged). The cataclysmic binary V405 Peg, originally discovered as ROSAT
Bright Source (RBS) 1955 (= 1RXS J230949.6+213523), shows a strong contribution
from a late-type secondary star in its optical spectrum, which led Schwope et
al. to suggest it to be among the nearest cataclysmic binaries. We present
extensive optical observations of V405 Peg. Time-series spectroscopy shows the
orbital period, Porb, to be 0.1776469(7) d (= 4.2635 hr), or 5.629 cycle/d. We
classify the secondary as M3 - M4.5. Astrometry with the MDM 2.4m telescope
gives a parallax 7.2 +- 1.1 milli-arcsec, and a relative proper motion of 58
mas/yr. Our best estimate of the distance yields d = 149 (+26, -20) pc. The
secondary stars's radial velocity has K2 = 92 +- 3 km/s, indicating a fairly
low orbital inclination if the masses are typical. Extensive I-band time-series
observations in the show the system varying between a minimum brightness level
of I = 14.14 and states of enhanced activity about 0.2 mag brighter. While the
low-state shows an ellipsoidal modulation, an additional photometric modulation
appears in the high state, with 0.1 mag amplitude and period 220-280 min. The
frequency of this modulation appears to be stable for a month or so, but no
single period was consistently detected from one observing season to the next.
We estimate the system luminosity by combining optical measurements with the
archival X-ray spectrum. The implied mass accretion rate is orders of
magnitudes below the predictions for the standard angular momentum loss above
the period gap. The system may possibly belong to a largely undiscovered
population of hibernating CVs.
