Thomson Engineering is issuing new 19-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a 12.3% annual interest rate. However, with the warrants attached the bonds will pay an 8.2% annual coupon. There are 30 warrants attached to each bond, which have a par value of $1,000. What is the value of the straight-debt portion of the bonds? Do not round your intermediate calculations.
A. $738.62
B. $773.80
C. $668.28
D. $703.45
E. $844.14
Answer: D
You might also like to view...
In economic terms, all resources:
A. can be made available everywhere. B. are infinite because they can be replaced by substitutes. C. are distributed fairly by the government. D. are distributed efficiently in the market.
Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1
If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?
Qualifications for success in a job might include all of the following except ____.
A. special training B. prior experiences and positions C. certifications D. prior salary levels
Because a co-op is technically not a "home" it does not charge a homeowner's fee
Indicate whether this statement is true or false.