Implied value of the warrants-canada inc

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Canada Inc. sells a tranche of bonds at an initial offering price of $1,000. Each bond pays a 9% coupon rate and has a term-to-maturity of 10 years. To sweeten the deal, Canada Inc. also includes 10 warrants with each bond. Assuming a yield-to-maturity on similar bonds of 11%, what is the implied value of the warrants?

Reference no: EM132700865

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