Adding warrants as a "sweetener" to bonds will:
A) reduce the value of the bond.
B) increase the coupon rate of the bond.
C) increase the value of the package.
D) make the bond riskier.

Question

Quizplus · Accepted Answer

Adding warrants as a "sweetener" to bonds increases the value of the package. This can make the bond more attractive to investors, as they have the potential for additional returns through the warrants. However, it does not necessarily affect the value or riskiness of the bond itself.

Adding Warrants as a "Sweetener" to Bonds Will