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Justin Co. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 11%, and they were

Justin Co. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 11%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 12%. What is the implied value of each warrant?

$1.49
$1.66
$0.00
$1.00
$4.56

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