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A company plans to issue 10-year bonds with annual interest payments and with 40 warrants attached.  ...

A company plans to issue 10-year bonds with annual interest payments and with 40 warrants attached.   Each warrant is expected to have a value of $1.50. A similar straight-debt issue would require an 11% coupon. What coupon rate should be set on the bonds-with-warrants so that the package will sell for $1,000?

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jeff jeffy answered 1 year ago
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