The Rapid Corporation is setting its terms on a new issue

Curry Corporation is setting the terms on a new issue of bonds with warrants. The bonds will have a 30-year maturity and annual interest payments. Each bond will come with 20 warrants that give the holder the right to purchase one share of stock per warrant at a price of $35 (the current price of the stock today). The investment bankers estimate that each warrant will have a value of $10.00. A similar straight-debt issue would require a 10% coupon.