Part A (16 marks) Gregg company is issuing new 30 year bonds that have warrants attached. If not for the warrants attached, the bonds would carry an 8 % annual coupon rate. However, with warrants attached the bonds will pay 6% annual coupon. There are 25 warrants attached to each bond, which have a par value of $1000.00. The exercise price of the warrants is $30.00 and the expected stock price 15 years from now (when the warrants may be exercised) is $65.55. What is the investor's expected overall pre-tax rate of return for this bond with warrants issue? (16 marks) Part B (9 marks) F The following data apply to Nembhard's Corporation convertible bonds. Maturity 15 Par value $1,000 $45.00 Annual coupon Stock price Conversion price Straight-debt yield 9% $50.00 12% (a) What is the bond's conversion ratio ? a (b) Whol