What is the value of warrants

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Reference no: EM132061933

1. Convertibles Petersen Securities recently issued convertible bonds with a $936 par value. The bonds have a conversion price of $36 per share. What is the bonds' conversion ratio, CR? Round your answer to the whole number. shares

2. Warrants Gregg Company recently issued two types of bonds. The first issue consisted of 20-year straight (no warrants attached) bonds with an 7% annual coupon. The second issue consisted of 20-year bonds with a 5% annual coupon with warrants attached. Both bonds were issued at par ($1,200). What is the value of the warrants that were attached to the second issue? Round your answer to the nearest cent. $

Reference no: EM132061933

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