b$.$ Assume the firm's stock now sells for $$20$ per share. The company wants to sell some $20-$year, $$1,000$ par value bonds with interest paid annually. Each bond will have attached $75$ warrants, each exercisable into $1$ share of stock at an exercise price of $$25.$ The firm's straight bonds yield $9\%.$ Assume that each warrant will have a market value of $$2\mathrm{.}5$ when the stock sells at $$20.$ What coupon interest rate and dollar coupon must the company set on the bonds with warrants if they are to clear the market? $($Hint: The convertible bond should have an initial price of $$1,000.)$ Do not round intermediate calculations. Round your answer for coupon interest rate to two decimal places. Round your answer for dollar coupon to the nearest dollar.

Coupon interest rate: $\%$

Dollar coupon: $ $$