Determine the coupon rate


Question1: Determine the coupon rate should be set on the bond with warrants if the total package is to sell for $1,000?

Question2: Assume the bonds were issued & the warrants immediately traded on the open market for $5 each. Determine what would this imply about the term of the issue? Did the company "win" or "lose"?

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Finance Basics: Determine the coupon rate
Reference No:- TGS018822

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