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An insurance company can invest in government bonds to obtain a yield of j2=10.05% p.a. The company is considering an investment which is a perpetuity

An insurance company can invest in government bonds to obtain a yield of j2=10.05% p.a. The company is considering an investment which is a perpetuity paying $3777 at the end of each quarter, and can be purchased for $134802. The net present value of this investment in dollars is:

A.

59638

B.

17392

C.

-59638

D.

-17392

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