Randy Company issued $4,700$ of its $$1,000$ par value bonds for $$1,500,$ providing total cash proceeds of $$7,050,000.$ There are no bond issue costs. The market price of Randy's common

shares on the date that the bonds were issued was $$35$ per share. The bonds were sold with $164,500$ warrants to acquire $164,500$ shares of the company's $$5$ par value common stock for

$$45$ per share. That is$,$ each bond carries $35$ warrants. Randy has existing bonds outstanding that currently trade without warrants at $$1,150.$ There are other Randy warrants outstanding

that trade for $$30$ each. Assume that the fair value of the bonds is more reliable than the market value of the warrants.