Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight debt with an 8% annual coupon. The second issue consisted of 20-year bonds with a 6% annual coupon and attached warrants. Both issues sold at their $1,000 par values. What is the implied value of the warrants attached to each bond?© BrainMass Inc. brainmass.com December 20, 2018, 5:00 am ad1c9bdddf
Value of warrants is expressed in the solution.