A firm issues 1,000 bonds (each with a face value of $1,000) for $1,010,000. Each bond included 10 warrants to purchase the firm's common stock for $20 per share. The firm estimates that the value of the bond without the warrant is 98% of the face value and that each warrant has a fair value of $4.50. The issuance takes place on June 30, 2022. On November 30, 2023, 6,000 warrants are exercised. At the time the warrants are exercised, the market price for the stock is $25 per share. Finally, on July 1, 2024, the remaining warrants expire without being exercised because the stock price had fallen below $20 per share ($15 per share at the time of expiration). The par value of stock is $1 per share. A firm issues 1,000 bonds (each with a face value of $1,000) for $1,010,000. Each bond included 10 warrants to purchase the firm's common stock for $20 per share. The firm estimates that the value of the bond without the warrant is 98% of the face value and that each warrant has a fair value of $4.50. The issuance takes place on June 30, 2022. On November 30, 2023, 6,000 warrants are exercised. At the time the warrants are exercised, the market price for the stock is $25 per share. Finally, on July 1, 2024, the remaining warrants expire without being exercised because the stock price had fallen below $20 per share ($15 per share at the time of expiration). The par value of stock is $1 per share