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Awarant is attached to a 51,000 par, 10 percent, 10-year bond, paying annual interest and having 20 warrants attached for the purchase of a firm's

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Awarant is attached to a 51,000 par, 10 percent, 10-year bond, paying annual interest and having 20 warrants attached for the purchase of a firm's stock The bonds were initialy sold for $1,120 When hsued, simlar risk, straight bonds were selling at a 14 percent rate ol rehumn The implied price of the warrant is OA 520 00 OB. $10 00 OC. $1643 OD. $20 40 Awarrant is attached to a $1,000 par, 10 percent, 10-year bond, paying annual interest and having 20 warrants attached for the purchase of a firm's stock. The bonds were initially sold for $1,120 When issued, similar risk straight bonds were selling at a 14 percent rate of return. The implied price of the warrant is O A. $20.00 O B. $10.00 O c. $16.43 O D. $20.40

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