A bond with 50 detachable warrants has just been offered for sale at ($1,000.) The bond matures

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A bond with 50 detachable warrants has just been offered for sale at $$1,000.$ The bond matures in eight years and has an annual coupon of $$100.$ Each warrant gives the owner the right to purchase two shares of stock in the company at $$15$ per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 12 percent. What is the value of one warrant?

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