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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? | |||
| $7.47 |
| $8.06 |
| $0.00 |
| $1.00 |
| none of the above |
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Financial Literacy For Managers
Authors: Richard A. Lambert
1st Edition
1613630182, 978-1613630181
