What is implied value of warrants attached to each bond

Assignment Help Operation Management

Reference no: EM131117483

Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 9% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond? Round your answer to the nearest cent.

Reference no: EM131117483

Questions Cloud

Hardware sent ram industries a signed purchase : Ram received Handy's purchase order on May 4. On May 5, Ram discovered that it had only 200 Model A-X socket sets and 100 Model W-Z socket sets in stock. Ram shipped the Model A-X and Model W-Z sets to Handy without any explanation concerning the ..

How will their currency values be affected : If the Asian countries experience a decline in economic growth (and experience a decline in inflation and interest rates as a result), how will their currency values (relative to the U.S. dollar) be affected?

Chocolate chip cookies for a customer party : A baker has a contract to bake three dozen chocolate chip cookies for a customer's party.Create a bottom-up estimate that includes both items needed for the project and the cost (both direct and indirect).

What other factor is likely to be affected by increased eco : Yet, this chapter suggests that when other factors are held constant, increased national income could increase imports and cause the local currency to weaken. In reality, other factors are not constant. What other factor is likely to be affected by i..

What is implied value of warrants attached to each bond : Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 9% coupo..

Presented below is information for the month of may : Gross Profit Method Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Financial incentives to attract business : A paper giving your thoughts and reasoning on whether cities and states using financial incentives to attract business is ultimately a win or a lose situation for these governmental units.

Explain four governmental expenditures that you believe : Discuss four governmental expenditures that you believe will have a significant impact on the national economy. Justify your response with examples.

Explain the type of pressure that these factors placed : In the 1990s, Russia was attempting to import more goods but had little to offer other countries in terms of potential exports. In addition, Russia’s inflation rate was high. Explain the type of pressure that these factors placed on the Russian curre..

User Account

All Pages