Question;A company will issue 20-year bonds with annual interest payments. Each bond will include 30 warrants that give the holder to purchase one share of stock per warrant. Each warrant is expected to have a value of $5.75. A similar straight-debt issue would require an 8% coupon. What coupon rate should be set on the bonds with warrants so that the package will sell for $1,000?
Paper#44902 | Written in 18-Jul-2015Price : $22