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On September 1, 2014, Sands Company sold at 104 (plus accrued interest) 3,480 of its 10%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock
On September 1, 2014, Sands Company sold at 104 (plus accrued interest) 3,480 of its 10%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $16 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $35,000 were incurred.
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