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BBB Company has a 1 5 years - to - maturity, 7 . 1 % annual coupon bond - with - warrants currently sells for
BBB Company has a yearstomaturity, annual coupon bondwithwarrants currently sells for $ Each bond has warrants attached to it BBB also has a yearstomaturity straight bond no warrants with annual coupon selling for $ Both bonds have par values $ What is the current value of each warrant? Hint: Calculate the straight bond yield first, then the value of the straight bond part of the BwW
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