Q330
Firms that attach bonds to stock warrants are usually
A.
less discounted
B.
more risky
AnswerC.
less risky
D.
more discounted
Answer: Option B
Solution
Answer: Option B
Solution:
Firms that attach bonds to stock warrants are usually more risky. Warrants are a derivative that give the right, but not the obligation, to buy or sell a security most commonly an equity at a certain price before expiration.