Warrants are long-term options to buy a stated number of common shares at a specified price that is generally attached to debt issues. ols Warrants are attached to debt in hopes of enticing investors to buy lower-coupon, long-term debt, because warrants give investors the chance to pront from the firm's upside potential. Warrants are like long-term Put options Call options 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 straighe 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-arge, mature firms or small, fast-growing firms? Small, fast-growing firms Large, mature firms Consider the following statement about warrants: Warrants are sweeteners because they add a special benefit to a debt instrument that increases its marketebilley and lowers interest rates, True or False True False