(191) Warrants Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight...

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Warrants 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 bonds with a 6% coupon paid annually and attached warrants. Both issues sold at their

$1,000 par values.What is the implied value of the warrants attached to each bond?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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