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    implied value of the warrants attached to each bond

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    Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight debt with an 8% annual coupon. The second issue consisted of 20-year bonds with a 6% annual coupon and attached warrants. Both issues sold at their $1,000 par values. What is the implied value of the warrants attached to each bond?

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    https://brainmass.com/economics/bonds/implied-value-warrants-attached-bond-311323

    Solution Summary

    Value of warrants is expressed in the solution.

    $2.19