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The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $1000 denominations with an annual coupon interest rate of 5%. Determine the value of these bonds today to an investor who requires a 10% return on his investment.

A) $25

B) $10

C) $500

D) $50

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