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A warrant is attached to a $1,000 par 10%, 15-year bond paying annual interest and having 10 warrants attached for the purchase of the firm's
A warrant is attached to a $1,000 par 10%, 15-year bond paying annual interest and having 10 warrants attached for the purchase of the firm's stock. The bonds were initially sold for $1,020. When issued similar risk straight bonds were selling to yield a 12% rate of return. Calculate the implied price of the warrant
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