Thomson engineering is issuing new 10-year bonds that have, Ask an Expert

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Thomson Engineering is issuing new 10-year bonds that have 20 warrants attached. If not for the attached warrants, the bonds would carry a 9% interest rate. However, with the warrants attached the bonds will pay a 7% annual coupon and still sell for the face value of $1,000. What is the value of each warrant?

a) $6.42 b) $7.15 c) $8.29 d) $9.10

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91557668

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