Determine the value of warrants for issue

Determine the value of warrants for issue

“Gregg company recently issued two kinds of bonds. First issue consisted of 20 year straight (no warrants attached) bond with 8% annual coupon. Second issue consisted of 20m year bond with 6% annual option with warrants attached. Both bonds were issued at par ($1000). Determine the value of warrants for the second issue?”

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