Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 8% annual coupon. The second issue consisted of 20-year bonds with a 6% annual coupon with warrants attached. Both bonds were issued at par ($1,000). What is the value of the warrants that were attached to the second issue? Round your answer to two decimal places.

Please answer with the given breakdown:

Value of the first issued bond = 1000 (Given Data)

Value of second issued bond =

Settlement: (Think of Settlement as the beginning of the duration of the bond)

Maturity: (Think of Settlement as the end of the duration of the bond)

Rate: (Coupon Rate)

YTM: (Yield to Maturity or Required Rate of Return)

Redemption: (Bonds Face Value, Par Value, or Fair Price; Note that is is $100, not $1,000. You make the adjustments by multiplying the answer by 10.)

Frequency: (If coupon payments are semiannul, you input in a 2. If it is annual, then you input a 1)

Basis: (Always leave it blank)

Bond Price: (The answer. But you need to multiply it by 10 to get the actual bond price.)

Multiply by 10 :

Value of Warrants =