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A consol bond promises to pay $1000 each year, forever, startingnext year. If the nominal interest rate is 5%, the presentdiscounted value of this consol

A consol bond promises to pay $1000 each year, forever, startingnext year. If the nominal interest rate is 5%, the presentdiscounted value of this consol is

A) $900.00.

B) $995.00.

C) $2,500.00.

D) $20,000.00.

E) $25,000.00.

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