Multiple Choice
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) $8.00
B) $8.42
C) $8.84
D) $9.28
E) $9.75
Correct Answer:
Verified
Correct Answer:
Verified
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