Please help with part b$.$ keep getting wrong answer. Thank you!

b$.$ Assume the firm's stock now sells for $$20$ per share. The company wants to sell some $20-$year, $$1,000$ par value bonds with interest paid annually. Each

bond will have attached $75$ warrants, each exercisable into $1$ share of stock at an exercise price of $$25.$ The firm's straight bonds yield $11\%.$ Assume that

each warrant will have a market value of $$2\mathrm{.}5$ when the stock sells at $$20.$ What coupon interest rate must the company set

if they are to clear the market? $($Hint: The convertible bond should have an initial price of $$1,000.)$ Do not round intermediate calculations. Round your

answer to two decimal places.

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What dollar coupon must the company set on the bonds with warrants if they are to clear the market? $($Hint: The convertible bond should have an initial

price of $$1,000.)$ Do not round intermediate calculations. Round your answer to the nearest dollar.

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