Consider a 20-year bond with 27 warrants. Each warrant has a strike price of $25 and 10 years until expiration. Each warrant value is estimated to be $5. The yield to maturity of a 20-year bond without warrants is 12%. What coupon rate must be set on the bond with warrants to make the total package sell for $1,000?

A. 10.19%

B.

13.75%

C.

11.50%

D.

10.68%