The analysis of convertible bonds and bonds with warrants is deferred until Chapter 9.

Price paid for bond with warrants '

Much of the money was raised in the form of convertible bonds and bonds with warrants attached.

By selling convertible bonds and bonds with warrants attached, the companies entered a kind of financial wonderland.

Microsoft planned to buy bonds with warrants under which it could purchase shares in the government-controlled company, according to the ministry of information and communications.

In addition, Japanese corporations issued tens of billions of dollars of bonds with warrants in the easy-money 1980's.

In the heady atmosphere of the late 1980's, Japanese companies issued more than $120 billion worth of equity-linked bonds - bonds with warrants attached and bonds convertible into stock.

During the Japanese stock market boom in the late 1980s, investment bankers persuaded many Japanese companies to raise capital by issuing bonds with warrants attached, although they did not require the funds for operational purposes.

Shareholders will be offered the alternative of buying six new shares for every four held, at a price still to be set, or of taking three shares and three bonds with warrants making them convertible into shares at a later date.

Morgan Stanley & Company calculates that in January a Japanese company issuing four-year bonds with warrants paid a net interest rate of slightly less than 3 percent, compared with a normal rate for a straight dollar borrowing of slightly more than 8.3 percent.

Microsoft and Korea Telecom, which is controlled by the government, said they had agreed on what officials here described as a "strategic alliance" under which Microsoft is buying 3.2 percent of Korea Telecom's shares in convertible bonds with warrants to buy stock in the company.

Some bonds have option features attached to them: callable and puttable bonds are examples of this, as are convertible bonds (bonds that can be converted into other types of bonds or into equity) and bonds with warrants attached to them.

Concurrently with the GE Shareholder's share acquisition, a GE Capital affiliate subscribed to W200 billion of Hyundai Card's subordinated bonds with warrants due October 31, 2010, exercisable into shares of HyundaiCard's common stock at the exercise price of W8,831 per common share.