Value of the warrants, Gregg Company recently issued two

Value of the warrants

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Reference no: EM13850120

Warrants

Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 8% annual coupon. The second issue consisted of 20-year bonds with a 7% annual coupon with warrants attached. Both bonds were issued at par ($1,000). What is the value of the warrants that were attached to the second issue? Round your answer to two decimal places.

Reference no: EM13850120

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