Discussions with investment bankers

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Illiad Inc. has decided to raise additional capital by issuing $177,300 face value of bonds with a coupon rate of 11%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $147,240, and the value of the warrants in the market is $16,360. The bonds sold in the market at issuance for $154,000. Prepare the entry if the warrants were nondetachable

Reference no: EM13327765

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