Assume the firm's stock now sells for $25 per share. The company wants to sell some 15-year, $1,000 par value bonds with interest paid annually. Each bond will have attached 40 warrants, each exercisable into 1 share of stock at an exercise price of $30. The firm's straight bonds yield 8% . Assume that each warrant will have a market value of $2.50 when the stock sells at $25. What coupon interest rate, and dollar coupon, must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $ 1,000.)