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There is an annual bond with 40 warrants attached. The maturity is in 20 years and the annual coupon rate is 8%. They were issued

There is an annual bond with 40 warrants attached. The maturity is in 20 years and the annual coupon rate is 8%. They were issued at a $820 par value. The yield of a similar straight bond is 13.5%. Calculate the implied value of the warrant.

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