Price of bond Coupon Interest rate Number with warrants interest rate on equal-risk Years to of warrants Bond attached Par value (paid annually) straight bond maturity attached to bond $1,000 $1,000 12 % 12.5% 20 10 1,200 1,000 10 11 15 25 500 500 8.5 9.5 10 5 980 1,000 11 13 20 35Underlying stock Type Cost Strike price per share Option of option of option price per share at expiration Put $400 $45 $35 Call 250 28 32 HOWD Call 450 40 45 Call 300 50 52 Put 350 45 50