A bond with 40 detachable warrants has just been offered for sale at $1,000. The bond matures in 10 years and has an annual coupon of $65. Each warrant gives the owner the right to purchase two shares of stock in the company at $55 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 8 percent. What is the value of one warrant? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Value of one warrant $
PLEASE FOLLOW INSTRUCTIONS ON ROUNDING, PLEASE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
A bond with 40 detachable warrants has just been offered for sale at $1,000. The bond matures in 10 years and has an annual coupon of $65. Each warrant gives the owner the right to purchase two shares of stock in the company at $55 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 8 percent. What is the value of one warrant? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Value of one warrant $
PLEASE FOLLOW INSTRUCTIONS ON ROUNDING, PLEASE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Related questions
| A bond with 40 detachable warrants has just been offered for sale at $1,000. The bond matures in 20 years and has an annual coupon of $68. Each warrant gives the owner the right to purchase two shares of stock in the company at $58 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 8 percent. |
| What is the value of one warrant? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Value of one warrant | $ |
