### Calculate the market price of warrants

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##### Reference no: EM1359850

Sloane Corporation offered detachable 5-year warrants to buy one share of common stock (par value \$5) at \$20 (at a time when the stock was selling for \$32). The price paid for 2,000, \$1,000 bonds with the warrants attached was \$205,000. The market price of the Sloane bonds without the warrants was \$180,000, and the market price of the warrants without the bonds was \$20,000. What amount should be allocated to the warrants?
a. \$20,000
b. \$20,500
c. \$24,000
d. \$25,000

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