Bombardier Inc's bond with 25 detachable warrants has just been offered for sale at $1,000. The bond matures in 20 years and has an annual coupon of $115. Each warrant gives the owner the right to purchase two shares of Bombardier stock at $19 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 17 percent. What is the value of one warrant? Multiple Choice $12.38 $27.62 $14.86 $11.14 $13.62

Bombardier Inc's bond with 25 detachable warrants has just been offered for sale at $1,000. The bond matures in 20 years and has an annual coupon of $115. Each warrant gives the owner the right to purchase two shares of Bombardier stock at $19 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 17 percent. What is the value of one warrant? Multiple Choice $12.38 $27.62 $14.86 $11.14 $13.62