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What is the straight-debt value of the bonds

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Question - A company recently issued bonds with attached warrants. The bond-plus-warrants package sells at a price equal to its $1,000 face value. The bonds mature in 7 years and have a 7% annual coupon. The company also has 7-year straight debt (with no warrants attached) outstanding. The straight debt has an annual yield to maturity of 10%. What is the straight-debt value of the bonds?

Reference no: EM133085786

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