Upstate Water Company just sold a bond with 59 warrants attached. The bonds have a...
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Accounting
Upstate Water Company just sold a bond with 59 warrants attached. The bonds have a 20-year maturity and an annual coupon of 11.4%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 17%. What is the implied value of each warrant? Do not round your intermediate calculations.
a.
$6.14
b.
$5.07
c.
$4.01
d.
$5.34
e.
$5.61
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