The binds have a 20 years maturity, an annual coupon rate of 12 % and they sold at their $1000 par value.

Charles River company has just sold a bond issue with 10 warrants attached. The binds have a 20 years maturity, an annual coupon rate of 12 % and they sold at their $1000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant?

Question:Charles River Company has just sold a bond issue with 10 warrants attached. The bonds have a 20 yearsmaturity, an annual coupon rate of 12 % and they sold at their $1000 par value. The...