Warren Corporation’s stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par?
https://nursingpapermasters.com/wp-content/uploads/2021/07/logo-300x75.png 0 0 developer https://nursingpapermasters.com/wp-content/uploads/2021/07/logo-300x75.png developer2022-02-04 15:14:062022-02-04 15:14:06Warren Corporation's stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds.