Determine implied value of warrants attached to bond


Neubert Enterprises currently issued $1,000 par value 15-year bonds with the 5% coupon paid annually and warrants attached. The bonds are presently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with the 7% coupon paid annually, also trading for $1,000. Determine implied value of warrants attached to bond?

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Mathematics: Determine implied value of warrants attached to bond
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