1 - Cobra Corp. issued 2,000 convertible bonds on January 1, 2020, which mature on December 31, 2024. Each $1,000 bond is convertible into 2 common shares at the option of the investor. The bonds have a stated rate of 8%, payable semi-annually on June 30 and Dec 31, and were issued at an effective rate of 6%. Similar bonds, without the conversion feature have an effective rate of 10%.

What is the total cash received by Cobra Corp. for the issuance of this bond on January 1, 2020?

2,170,604

2- Cobra Corp. issued 2,000 convertible bonds on January 1, 2020, which mature on December 31, 2024. Each $1,000 bond is convertible into 2 common shares at the option of the investor. The bonds have a stated rate of 8%, payable semi-annually on June 30 and Dec 31, and were issued at an effective rate of 6%. Similar bonds, without the conversion feature have an effective rate of 10%.

What is the value of the conversion rights associated with this convertible bond?

325,039

3-

Cobra Corp. issued 2,000 convertible bonds on January 1, 2020, which mature on December 31, 2024. Each $1,000 bond is convertible into 2 common shares at the option of the investor. The bonds have a stated rate of 8%, payable semi-annually on June 30 and Dec 31, and were issued at an effective rate of 6%. Similar bonds, without the conversion feature have an effective rate of 10%.

At the time of issuance, what amount of liability will Cobra record for this financial instrument?

	1,845,565