Problem:
Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight debt with an 8% coupon paid annually. The second issue consisted of 20-year binds with 6% coupon paid annually and attached warrants. Both issues sold at their $1000 par values.
Requirement:
Question: What is the implied value of the warrants attached to each bond?
Note: Please provide full description.