Question: Buddy Corp received $ 1 1 , 0 0 0 cash when it issued ten $ 1 , 0 0 0 face value bonds -

Buddy Corp received $11,000 cash when it issued ten $1,000 face value bonds -- that by itself would sell at 97-- along with a detachable warrant with each bond. The market value of each warrant is about $80. How much of the lump-sum sale proceeds should be allocated to the warrants using the proportional method?

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