Warrants are long-berm aptions to buy a stated number of common shares at a specified price that is generally attached to debtissues. Warrants are attached to debt in hapes of enticing investors to buy lower-coupon, long-term debt, because warants give investors the chance to profit from the firm's upside potential. Warrants are like long-berm: O Put aptions O Call options Triptych Food Corp. is issuing new 19-year bonds with 31 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 12.40% coupon rate. Instead, the attached warrants allow Triptych Food Corp. to issue the bonds at par with a 7.44% ooupon, calculate the straight value of the bond and the value of each warrant in the following table. (Note: ssume 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 bands with attached warrants-large, mature firms or small, fast-growing irms? O Large, mature firmes O Smal, fast-growing firms Consider the following statement about warrants: Warrants are sweeteners because they add a specialbenefit to a debt instrument that increases its marketability and lowers interest rates. True or False: The preceding statement is correct O True O False