What is the total value of the bond component

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A firm is issuing a package of 20 year bonds-with-warrants for $1,000.  Each package will have 50 warrants with a value of $1.50/warrant.  The firm's investors require a yield of 12%. What is the value of the warrant component?

What is the total value of the bond component (assuming annual compounding)?

Reference no: EM132047654

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