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Posted by: johnsonj
Price Quoted by Student: $2
Posted On: 2011-07-01 07:07:59
 
Question

Warrants

(2) Gregg Company recently issued two types of bonds. The first issue considered of 20 year strait debt with an 8 % annual coupon. The second issue consisted of 20 year bonds with a 6 % annual coupon and attached warrants. Both issues sold at their $ 1,000 par values. What is the implied value of the warrants attached to each bond?
 


Solutions
N = 20       &n
Price $2
Attachment 1: Gregg Company recently issued.doc
Solution Posted By: Johnsonj    Posted on: 01-07-2011