What is the implied value of each warrant

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Reference no: EM131089263

Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 25-year maturity and an annual coupon of 13%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 16%. What is the implied value of each warrant?

Reference no: EM131089263

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