Describe the term bond valuation

Reference no: EM1314556

Describe the term Bond valuation

a. What coupon rate should be set on the bond with warrants if the total package is to sell for $1,000?

b. Suppose the bonds were issued and the warrants immediately traded on the open market for $5 each. What would this imply about the term of the issue? Did the company "win" or "lose"?

Reference no: EM1314556

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