1. In January 2004, a company announced two types of convertible debentures. First, it issued 50 lakh 10 per cent, fully convertible debentures of *1000 each, at par. Each convertible debenture was fully convertible into 5 shares of 200 (i.e., *100 par plus a premium of 100), after two years from the date of allotment of debentures. The company also announced a public issue of 50 lakh 10 per cent, partly convertible debentures of 2,000 each. Like the first issue, *1,000 of the debenture's face value was convertible into 5 shares. The non-convertible portion of the debenture was to be redeemed at the end of 10 years, from the date of allotment. At the time of these issues, the company's share was selling for 120. Analyze both types of debentures by making appropriate assumptions.