What is the implied value of each warrant

Reference no: EM13275010

Upstate Water Company just sold a bond with 80 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. Currently, the yield on similar straight bonds is 15%. What is the implied value of each warrant?

Reference no: EM13275010

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