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    Finance: Implied value of Warrant

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    Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15 -year straight debt with 7% coupon paid annually, also trading for $1,000. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15 -year straight debt with 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?

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    https://brainmass.com/business/finance/finance-implied-value-of-warrant-566175

    Solution Summary

    The file provides step by step workings to arrive at implied value of warrant.

    $2.19

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