Question: Herbert Engineering is issuing new 2 2 - year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a
Herbert Engineering is issuing new year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a annual interest rate. However, with the warrants attached the bonds will pay a annual coupon. There are warrants attached to each bond, which has a par value of $ What is the value of the straightdebt portion of the bonds? Do not round your intermediate calculations.
a $
b $
c $
d $
e $
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