I Online te: x west.cengagenow.cornarn/takeAssignmentnakeAssignmentMando ament:

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I Online te: x west.cengagenow.cornarn/takeAssignmentnakeAssignmentMando ament: Chapter 20 - IHybrid Financing ions Problem 20.02 eQuestion7 of9 Check My Work (a remaining) eBook Problem 20-2 Warrants Gregg Company recently issued two types of bonds. The first issue consisted of 20 year straight (no warrants bonds with a 7% annual coupon with warrants attached. Both bonds were two decimal places. consisted of 20-year straight (no warrants attached) bonds with an 10% annual coupon, The tecondime consited d 20,yer issued at par ($1,000), what is the value of the warrants that were attached to the second-e, Ro nd r answer to Check My Work (s remaining) Problem 20.02 for Grading

Explanation / Answer

Difference in coupon rate = 10-7 = 3%

Par value = $1000

Value of the warrants that were attached to the second issue = 1000*3% = $30

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