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Bonds with Detachable Warrants: Langdon & co. issues bonds with a face value of $50,000 for $51000. each $1000 bond carries 10 warrants, and each
Bonds with Detachable Warrants:
Langdon & co. issues bonds with a face value of $50,000 for $51000. each $1000 bond carries 10 warrants, and each warrant allows the holder to acquire one share of $1 par common stock for $40 per share. immediately after the issuance, the bonds are quoted at 99 ex rights and the warrants are quoted at $5 each. Calculate the value to be assigned to the bonds and to the warrants.
value assigned to bonds
value assigned to warrants
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