What is the value of each warrant

Reference no: EM13271666

Thomson Engineering is issuing new 15-year bonds that have 30 warrants attached. If not for the attached warrants, the bonds would carry a 9% interest rate. However, with the warrants attached the bonds will pay a 6% annual coupon and still sell for the face value of $1,000. What is the value of each warrant?

Reference no: EM13271666

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