Bonds with attached warrants are frequently issued:
A)with very low coupons.
B)at a greatly discounted price.
C)with an attached share of preferred stock.
D)with a share purchase price set equal to the market price at time of share purchase.
E)with an attached share of common stock.

Question

Quizplus · Accepted Answer

Bonds with attached warrants are often issued with very low coupons because the warrants provide an additional incentive for investors, allowing the issuer to offer a lower interest rate.

Bonds with Attached Warrants Are Frequently Issued