Bond Valuation
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(Not rated)
Neubert enterprises recently issued $1000 par value 15 year bonds with a 5% coupon paid annually and warrants attached. these bonds are currently trading for $1000. Neubert also has outstanding $1000 par value 15 year straight debt with a 7% coupon paid annually, also trading for $1000. What is the implied value of the warrants attached to each bond?
10 years ago
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