Question
A bond with 5 warrants attached to it is issued with a 3.5% coupon, 7 years in maturity, $1000 par value, and is sold for
A bond with 5 warrants attached to it is issued with a 3.5% coupon, 7 years in maturity, $1000 par value, and is sold for $1000. The going rate of interest is 5%.
A. Calculate the intrinsic value of the warrant.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
