Shanton Corporation could issue 15-year straight debt at a rate of8%. Instead, Shanton issues 15-year debt with a coupon rate of 6%,but each bond has 25 warrants attached. The bonds can be issuedat par ($1,000 per bond). Assuming annual interest payments, whatis the implied value of each warrant? ($6.85)

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A: Excel Spreadsheet:

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A:

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A: Given:

Q: corporation iss milar 15-year be pect to receive $888 $828 $879 $896 $862

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A: Hello, I am only answering first three subparts of the question as per the policy and if you want…

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Q: What is the difference between this bond's YTM and its YTC

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A: Option d: This option is correct. Step 1:We have to calculate the after-tax cost of debt.First, we…