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Warren Corporation's stock sells for $ 4 2 . 0 0 per share. The company wants to sell some 2 0 - year, annual interest,

Warren Corporation's stock sells for $42.00 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 95 warrants attached to it, each exercisable into one share of stock at an exercise price of $47.00. The firm's straight bonds yield 10.6%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42.00. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par? Do not round your intermediate calculations.

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