Hudson Bay Fishing Corporation has just issued a 10-year,9 percent annual-pay bond with a $1,000 face value.In addition,the bond was issued with 50 detachable warrants.The bond was issued at par.Each warrant gives the owner the right to purchase 2 shares of the company's stock for $15 each.Bonds with equivalent risk but with no attached warrants currently yield 11 percent.What is the value of one warrant?

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The Answer of Hudson Bay Fishing Corporation has just issued a 10-year,9 percent annual-pay bond with a $1,000 face value.In addition,the bond was issued with 50 detachable warrants.The bond was issued at par.Each warrant gives the owner the right to purchase 2 shares of the company's stock for $15 each.Bonds with equivalent risk but with no attached warrants currently yield 11 percent.What is the value of one warrant?

Hudson Bay Fishing Corporation Has Just Issued a 10-Year,9 Percent