=+LG 5 P17–16 Evaluation of the implied price of an attached warrant Petra Jones is considering investing in a $1,000-par-value bond, with 20 years until maturity, and a 12%

annual interest rate. The bond has 15 warrants attached for the purchase of common stock and the theoretical value of each warrant is $15. The interest rate on an equal-risk straight bond is currently 14%.