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15 year maturity bonds with 40 warrants attached have just been issued. The bonds have an annual coupon of 6%, and they were issued at
15 year maturity bonds with 40 warrants attached have just been issued. The bonds have an annual coupon of 6%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 8%. What is the implied value of each warrant?
| $4.17 | ||
| $4.28 | ||
| $4.43 | ||
| $4.57 | ||
| $4.71 |
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