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Cost for repair on 1998 Honda Accord

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My Honda Accord Ex has 120,000 miles, engine light came on2 days ago. I took it to autozone and they said it's the O2 sensor or the Catalytic convertor.How much should it cost to repair? Just bought December 18,2010. I have a 3 month warrenty that says it covers the engine & transmition, However they garentee inspection and it will fail because of the light.I was wonderring the cost if I get stuck with the bill. Autozone definition: Catalyst system efficiency below threshold bank 1 probable cause:

1. A/F ratio concern
2. Air leak near HO2S(Heated oxygen sonsor
3. Ignition System concern
4. Faulty catalytic converter
(1) Answer
While the other items you noted can cause the fault described for your 1998 Honda Accord, most commonly, in this situation the fault lies with the catalytic converter. Please read the following RepairPal article for more information - http://repairpal.com/OBD-II-Code-P0420. You can also use the estimator to find our the cost to replace your catalytic converter it that is indeed the cause - http://repairpal.com/estimator?car_type_id=2341