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Evaluation of the implied price of an attached warrantDinoo Mathur wishes to determine whether the $ price asked for Stanco Manufacturing's bond is fair in

Evaluation of the implied price of an attached warrantDinoo Mathur wishes to determine whether the $ price asked for Stanco Manufacturing's bond is fair in light of the theoretical value of the attached warrants. The $-par-value, -year, %-coupon-interest-rate bond pays annual interest and has warrants attached for purchase of common stock. The intrinsic value of each warrant is $. The interest rate on an equal-risk straight bond is currently %. a. Find the straight value of Stanco Manufacturing's bond. b.Calculate the implied price of all warrants attached to Stanco's bond. c.Calculate the implied price of each warrant attached to Stanco's bond. d.Compare the implied price for each warrant calculated in part c to its intrinsic

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