A bond with 25 detachable warrants has just been offered for sale at $1,000. The bond matures in 20 years and has an annual coupon of $105. Each warrant gives the owner the right to purchase two shares of stock in the company at $16 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 16 percent. What is the value of one warrant? Multiple Choice O $13.04 $26.96 $1565 $1174 $1435