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Herbert Engineering is issuing new 2 2 - year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a

Herbert Engineering is issuing new 22-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry a 10.3% annual interest rate. However, with the warrants attached the bonds will pay a 6.3% annual coupon. There are 30 warrants attached to each bond, which has a par value of $1,000. What is the value of the straight-debt portion of the bonds? Do not round your intermediate calculations.
a. $469.35
b. $656.58
c. $661.21
d. $530.65
e. $712.29
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