|
30
Endorse Dismiss |
Explanation of a retail internet forex facilitator evaluation and comparison concepti am frequently turned to as to what the meaning of harmless warrant is. What harmless warrant is, is a warrant that requires the holder to surrender a similar bond when purchasing a new fixed-income instrument. For the warrant to be exercisable, the two bonds must have similar terms, such as maturity, yield and principal. Also known as a "wedding warrant." Issuing a harmless warrant provides the debt issuer with some call protection. Under a normal warrant, bond holders might all opt to buy more instruments, drastically increasing the firm's level of debt. With a harmless warrant, the original bond must be surrendered at the time of purchase, allowing the level of debt to remain constant. |
| by michaela_preston |
