Curran Contracting Is Issuing New 25-Year Bonds That Have Warrants

Curran Contracting is issuing new 25-year bonds that have warrants attached.If not for the attached warrants,the bonds would carry an 11.2% annual interest rate.However,with the warrants attached the bonds will pay a 9.5% annual coupon.There are 31 warrants attached to each bond,which have a par value of $1,000.What is the implied value of each warrant? Do not round your intermediate calculations.

A) $4.10
B) $4.55
C) $5.23
D) $3.87
E) $5.46