Upstate Water Company just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant? (a) $3.76 (b) $3.94 (c) $4.14 (d) $4.35 (e) $4.56