Triptych Food Corp. is issuing new $5-$year bonds with $17$ warrants attached to each $$1,000$ par value bond. Triptych Food Corp. wanted to issue the bonds at par, but a straight$-$debt bond $($without warrants$)$ would have required a $11\mathrm{.}00\%$ coupon rate. Instead, the attached warrants allow Triptych Food Corp. to issue the bonds at par with a $6\mathrm{.}60\%$ 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

Small, fast$-$growing firms

True or False: Warrants are sweeteners because they add a special benefit to a debt instrument that increases its marketability and lowers interest rates.

$$ True

$$ False