How do investors calculate the net present value of a bond? If a bond's coupon payment is C, the interest rate is R, and the bond's coupon payment is made in each period for T years at which time the original principal, P, is repaid, then the bond's present discounted value (PDV) is P + + T R + + + O A. PDV = C(1 +R) + C(1 + R)2 + ... + C(1 +R)" +P(1+r)". OB. PDV = - + + R R2 R' O C. PDV = (1+R) (1 +R)? (1 +R) D. PDV = (1+R) (1 +R)? (1 + R)". (1+r)" O E. PDV = P + + ... (1 +R) (1 + R2 P + + + + + (1+r) If the interest rate is 5 percent, what is the present value of a perpetuity that pays $10,000 each year, forever? The perpetuity's value is $ (Enter a numeric response rounded to two decimal places.)