Delta, Inc. has the option of issuing 30-year plain vanilla bonds at an offering price of $1,000 with an interest rate of 14%. Instead, they opt for 30-year bonds with a face value of $1,000, a coupon rate of 5% and 14 warrants attached, issued at face value. Assume annual coupon payouts.

1.What is the implied value of each detachable warrant issued by Delta, Inc.?