Spandust Industries Inc. is issuing new 11-year bonds with 23 warrants attached to each $1,000 par value bond. Spandust Industries Inc. wanted to issue the bonds at par, but a straight-debt bond (without warrants) would have required a 10.20% coupon rate. Instead, the attached warrants allow Spandust Industries Inc. to issue the bonds at par with a 6.12% coupon. Select 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? The consensus opinion of analysts is that Spandust Industries Inc. undervalued the warrants that it attached to its bonds. According to the analysts, the coupon rate on Spandust Industries Inc.'s bonds too high or too low? Too high Too low 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: True False