Randall and Arts Inc. is issuing new 19-year bonds with 31 warrants attached to each $1,000 par value bond. Randall and Arts Inc. wanted to issue the bonds at par, but a straight-debt bond (without warrants) would have required a 10.80% coupon rate. Instead, the attached warrants allow Randall and Arts Inc. to issue the bonds at par with a 6.48% coupon. Calculate the straight value of the bond and the value of each warrant in the following table. (Note: Assume that the company pays annual coupons.) Value What is the straight value of the bond? What is the value of each warrant? Which kind of firm is more likely to issue bonds with attached warrants-large, mature firms or small, fast-growing firms? Small, fast-growing firms Large, mature firms Consider the following statement about warrants: Warrants combined with debt instruments that can be removed by the holder and sold in the secondary markets separately are called detachable warrants. True or False: The preceding statement is correct. True False