Target wants to sell some 25-year, $1,000 par value bonds with coupon interest paid annually. Each bond has 45 warrants attached to it. The yield of the firm's bonds with no warrants is 16%. The market value of each warrant is $3.00. If Target wants to sell the bonds with warrant at par, what should be the annual coupon rate?
- 11.72%
- 12.68%
- 13.79%
- 14.88%
- 15.17%
- No enough information