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Category > Business & Finance Posted 11 Jun 2017 My Price 11.00

Curran Contracting is issuing new 25-year bonds

Curran Contracting is issuing new 25-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry an 11% annual interest rate. However, with the warrants attached the bonds will pay an 8% annual coupon. There are 30 warrants attached to each bond, which have a par value of $1,000. What is the implied value of each warrant?

  a. $9.28  
  b. $8.84  
  c. $8.00  
  d. $9.75  
  e. $8.42

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Status NEW Posted 11 Jun 2017 04:06 AM My Price 11.00

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