A. less discounted
B. more risky
C. less risky
D. more discounted
✅ The correct answer is option B.
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.
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.