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Potter lopez inc just sold a bond with 50 warrants

Question: Potter & Lopez Inc. just sold a bond with 50 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. The current yield on similar straight bonds is 15%. What is the implied value of each warrant?

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Finance Basics: Potter lopez inc just sold a bond with 50 warrants

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