Consider a bond with an equity warrant. The warrant entitles the bondholder to buy 25 shares of the issuer at 50 per share for the lifetime of the bond. The bond is a 30-year zero coupon bond with a 1,000 par value that has a yield to maturity of i = 5 percent. The price of the bond is 500. What is the value of the warrant?

A)231.38

B)268.62

C)500

D) none of the above