Warrants are often attached to debt securities to increase the debt issue's attractiveness to investors.

Name: Warrants are often attached to debt securities to increase the debt issue's attractiveness to investors.
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Question

Quizplus · Accepted Answer

This is true. Warrants give investors the option to purchase additional shares of the underlying stock at a certain price, which can increase the potential return on the investment. This added benefit can make the debt securities more appealing to investors.

Warrants Are Often Attached to Debt Securities to Increase the Debt