Question
The current stock price Po = $15. Rd of equivalent 20 year annual payment bonds without warrants is 9%. 50 warrants are attached to each
The current stock price Po = $15. Rd of equivalent 20 year annual payment bonds without warrants is 9%. 50 warrants are attached to each bond with an exercise price of $18. Each warrants value will be $2. What is the value of the bond?
What is the coupon payment and rate of the above?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
5th edition
1285425758, 978-1305333468, 1305333462, 978-1285425757
