Using a financial calculator, input N = 20, I/YR = 10, PMT = 80, and FV = 1000.
Then press the PV key to obtain the bond’s value of $829.73, or approximately
$830. Thus, a person buying the bonds in the initial underwriting would pay $1,000
and receive in exchange a straight bond worth about $830 plus 20 warrants that are
presumably worth about $1,000 − $830 = $170:
presumably