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Consider a bond with an equity warrant. The warrant entitles the bondholder to buy 20 shares of the issuer at 55 per share for the

Consider a bond with an equity warrant. The warrant entitles the bondholder to buy 20 shares of the issuer at 55 per share for the lifetime of the bond. The bond is a 20-year zero coupon bond with a 1,000 par value that has a yield to maturity of i = 6 percent. The price of the bond is 500. What is the value of the warrant? Group of answer choices

a. 231.38

b.268.62

c.188.20

d. 311.80

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