Assume the firm's stock now sells for $30 per share. The company wants to raise $10 million by issuing 20-year, annual interest, $1,000 par value bonds. Each bond will have attached 60 warrants, each exercisable into 1 share of stock at an exercise price of $35. The firms straight bonds yield 10 percent. Each warrant is expected to have a market value of $2 when the stock sells at $30. The company wants to establish a coupon interest rate and dollar coupon to ensure that the bonds will clear the market.