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Baker, Inc. just sold a bond with 20 warrants attached. The bonds have a 30-year maturity and an annual coupon of 10%, and they were

Baker, Inc. just sold a bond with 20 warrants attached. The bonds have a 30-year maturity and an annual coupon of 10%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 12%. What is the implied value of each warrant?

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