MTC issued a 30-year bond with a par value of one million and a coupon rate of

Fantastic news! We've Found the answer you've been seeking!

Question:

MTC issued a 30-year bond with a par value of one million and a coupon rate of ten percent. The said bond issuance has five thousand warrants attached to it and it is currently being sold at nine hundred fifty thousand. When issued, similar risk straight bonds were selling at a yield to maturity of eleven percent and the current risk-free rate in the market is 5%.

Required:

1. What is the present value of all of the coupons of the bond issuance?

2. What is the straight bond price of the bond issuance?

3. What is the implied price per warrant of the bond issuance?

Round off your final answers to two(2) decimal places. Get all of the decimals in the processes and use commas as separators. Exclude currency sign.