Straight Value of the Bond - 298.06; 548.81; 639.23; 541.16

Value of each warrant - 14.80; 14.55; 13.97; 11.64

Stay Swift Corp. is issuing new 19-year bonds with 31 warrants attached to each $1,000 par value bond. Stay Swift Corp. wanted to issue the bonds at par, but a straight-debt bond (without warrants) would have required a 13.00% coupon rate. Instead, the attached warrants allow Stay Swift Corp. to issue the bonds at par with a 7.80% 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? Which kind of firm is more likely to issue bonds with attached warrants-large, mature firms or small, fast-growing firms? Large, mature firms OSmall, fast-growing firms