last option is 19.03 Het A bond with 20 detachable warrants has...
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last option is 19.03
Het A bond with 20 detachable warrants has just been offered for sale at $1,000. The bond matures in 15 years and has an annual coupon of $105. Each warrant gives the owner the right to purchase two shares of stock in the company at $15 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 17 percent. What is the value of one warrant? Multiple Choice $17.30 $32.70 $20.76 $15.57
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