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There is an annual bond with 50 warrants attached. The maturity is 20-year and the annual coupon rate is 12%. They were issued at their

There is an annual bond with 50 warrants attached. The maturity is 20-year and the annual coupon rate is 12%. They were issued at their $1000 par value. The yield of a similar straight bond is 15%. Calculate the implied value of the warrant.

A. $7.688

B. $6.677

C. $6.320

D. $3.760

E. $2.187

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