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