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A bond with 20 detachable warrants has just been offered for sale at $1,000. The bond matures in 30 years and has an annual coupon
A bond with 20 detachable warrants has just been offered for sale at $1,000. The bond matures in 30 years and has an annual coupon of $67. Each warrant gives the owner the right to purchase two shares of stock in the company at $57 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 8 percent.
What is the value of one warrant?(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
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