BOND WITH WARRANT meaning in Law Dictionary

standard BOND that is given with connected WARRANTS (ie, long-dated OPTIONS), that may usually be detached and traded independently. By offering the package, the issuer lowers its effective COST OF CAPITAL. The bond, that can easily be denominated in just one of numerous currencies and carry a maturity ranging from 1 to ten years, is normally issued at PAR VALUE, but its continuous price with warrants retained depends upon the INTRINSIC VALUE and TIME worth of the warrants. While attached warrants is issued on a variety of sources, they are generally for this cost of the issuer