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McGovern Enterprises Is Interested in Issuing Bonds with Warrants Attached

question 12

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McGovern Enterprises is interested in issuing bonds with warrants attached.The bonds will have a 30-year maturity and annual interest payments.Each bond will come with 20 warrants that give the holder the right to purchase one share of stock per warrant.The investment bankers estimate that each warrant will have a value of $10.00.A similar straight-debt issue would require a 10% coupon.What coupon rate should be set on the bonds-with-warrants so that the package would sell for $1,000?


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Western Women

Females from or living in Western societies, often associated with specific social, cultural, and economic characteristics and values.

Sexual Orientations

The direction of an individual's sexual attraction toward people of the opposite sex, same sex, or both sexes.

Paraphilias

Atypical sexual interests toward objects, situations, or individuals that are not part of normative stimulation.

Heterosexual

A sexual orientation characterized by the romantic or sexual attraction to individuals of the opposite sex.

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