Warren Corporation's stock sells for $42/share. The company wants to sell some 20-year annual interest, $1000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into 1 share of stock at an exercise price of $47. The firm's straight bonds yield 10%. each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest amount must the company set on the bonds in order to sell the bonds-with-warrants at par?
a) 7.83%
b) 8.24%
c) 8.65%
d) 9.08%
e) 9.54%