Example $2$

On January $1,2024,$ TNT Manufacturers issued $$50$ million of $8\%$ bonds due

$2034$ at $104(104\%$ of face value$).$ Accompanying each bond were $20$

warrants. Each warrant permitted the holder to buy one share of $$1$ par

common stock at $$15$ per share. Shortly after issuance, the warrants were

listed on the exchange at $$4$ per warrant.