Debt Flashcards
1
Q
How do you determine the fair value of a bond when a detachable warrant was involved?
A
Issuance Price = Face Vale x 109 or 98
LESS Fair Value Warrants = (Number of Warrants x Price of Warrants)
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How do you determine the fair value of a bond when a detachable warrant was involved?
Issuance Price = Face Vale x 109 or 98
LESS Fair Value Warrants = (Number of Warrants x Price of Warrants)