Question
Thirty year maturity bonds have just been issued with 40 attached warrants, with an annual coupon of 10%, at their $1,000 par value. The current
Thirty year maturity bonds have just been issued with 40 attached warrants, with an annual coupon of 10%, at their $1,000 par value. The current yield on similar straight bonds is 12%. What is the implied value of each warrant?
| $4.03 | ||
| $4.24 | ||
| $4.44 | ||
| $4.61 | ||
| $4.86 |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
