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Austin bought an annual perpetuity due in 2 0 0 2 that pays $ 4 on even years ( i . e . 2 0

Austin bought an annual perpetuity due in 2002 that pays $4 on "even" years (i.e.2002,2004,2006, etc.) and $7 on "odd" years (i.e.2003,2005, etc.). Calculate the present value of the perpetuity at an annual effective rate of 5%.

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