Question
Company recently issued $1,000 par value 15-year bonds with a 7% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Company
Company recently issued $1,000 par value 15-year bonds with a 7% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Company also has outstanding $1,000 par value 15-year straight debt with a 9% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?
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Lending Investments And The Financial Crisis
Authors: Elena Beccalli, Federica Poli
1st Edition
1349564982, 978-1349564989
