Potter amp lopez inc just sold a bond with 50 warrants


Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 25-year maturity and an annual coupon of 13%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 16%. What is the implied value of each warrant?

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Financial Management: Potter amp lopez inc just sold a bond with 50 warrants
Reference No:- TGS01467321

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