A Bond with 10 Detachable Warrants Has Just Been Offered

A bond with 10 detachable warrants has just been offered for sale at $1,000.The bond matures in 12 years and has an annual coupon of $80.Each warrant gives the owner the right to purchase two shares of stock in the company at $14 per share.Ordinary bonds (with no warrants) of similar quality are priced to yield 11 percent.What is the value of one warrant?

A) $7.00
B) $13.58
C) $14.00
D) $16.67
E) $19.48