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EMC issued 2 5 year bonds with warrants which had an expiry date of 1 0 years. The stock price of EMC was currently trading

EMC issued 25 year bonds with warrants which had an expiry date of 10 years. The stock price of EMC was currently trading at $20 and investors can exercise the warrants at a strike price of 25 within first years and $35 after first five years. The reasons for the stepped up strike price was ATo raise additional capital with the hope that investors will buy the warrants at $35 B) To help investors make more profit C) The stepped up strike price was to force investors exercise the option before five years D) To ensure that the companies make more revenues E) To reduce overall expenses

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