Question: anyone know how to do it in step by step A B D E F H 1 J K L M Rowdy Reptiles is issuing

anyone know how to do it in step by step

A B D E F H 1 J K L M Rowdy Reptiles is issuing new 15-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry an 12% annual interest rate. However, with the warrants attached the bonds will pay a 8% annual coupon. There are 25 warrants attached to each bond, which have a par value of $1,000. What is the value of each warrant? 15 8.00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 years to maturity coupon rate PMT YTM par value bond value without warrants number of warrants implied value of warrants implied value per warrant A B D E F H 1 J K L M Rowdy Reptiles is issuing new 15-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry an 12% annual interest rate. However, with the warrants attached the bonds will pay a 8% annual coupon. There are 25 warrants attached to each bond, which have a par value of $1,000. What is the value of each warrant? 15 8.00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 years to maturity coupon rate PMT YTM par value bond value without warrants number of warrants implied value of warrants implied value per warrant

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