Warren Corporation's stock sells for $38.00 per share.The company wants to sell some 20-year,annual interest,$1,000 par value bonds.Each bond would have 85 warrants attached to it,each exercisable into one share of stock at an exercise price of $50.00.The firm's straight bonds yield 11.6%.Each warrant is expected to have a market value of $1.80 given that the stock sells for $38.00.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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? 11ea856c_8aee_f67e_9aec_6f637dee185f_TB1222_00 11ea856c_8aee_f67f_9aec_95907f06fef5_TB1222_00 Set N = 20,I/YR = 11.6%,PV = ?847,FV = 1,000 and solve for PMT: $96.03
To get this payment on a $1,000 bond,the coupon rate = PMT/$1,000 = 9.60%

Warren Corporation's Stock Sells for $38