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Lamar could have issued bonds without warrants attached

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Lamar Inc. just sold bonds each with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. Lamar could have issued bonds without warrants attached with a 15% coupon rate. What is the implied value of each warrant?

Reference no: EM13570265

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