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125. thomson engineering is issuing new 10 year bonds that have 20 warrants attached. if not for the attached warrants the bonds would carry a
125. thomson engineering is issuing new 10 year bonds that have 20 warrants attached. if not for the attached warrants the bonds would carry a 9% interest rate. However with the warrents attached the bonds will pay a 7 % annaual coupon and still sell for the face value of 1,000. what is the value of each warrant?
a. 6.42 b. 7.15 c 8.29 d9.10
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