(10 points) the bond transactions. 1 On August 1, 2015, Lane Corporation called its 10% convertible bonds for conversion. The $7,500,000 par bonds were converted into 280,000 shares of $20 par common stock. On August 1, there was $600,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore all interest payments. 2. Packard, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $2,000,000, at 102. The investment banker indicates that if the bonds had not been convertible they would have sold at 101 Gomez Company issues $8,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $7,896,000 and the value of the warrants is $540,000. The bonds with the warrants sold at 101. 3