What is the implied value of each warrant


Lamar Inc. just sold bonds each 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. Lamar could have issued bonds without warrants attached with a 15% coupon rate. What is the implied value of each warrant?

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Finance Basics: What is the implied value of each warrant
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