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Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 6% annual coupon. The
Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 6% annual coupon. The second issue consisted of 20-year bonds with a 5% annual coupon with warrants attached. Both bonds were issued at par ($800). What is the value of the warrants that were attached to the second issue? Round your answer to the nearest cent.
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