2 2 3 4 6 4 -- Question 5 (7 points) Question 5 (7 marks) House of the Dragon Lid., a publically traded company using VFRS, sold $350,000 of 5% and interest payments) convertible 5 year bonds at 101%. The market interest rate on the sale date was 7. Each $1,000 bond was convertible into 20 shares of House of the Dragon Lid. no a value common shows on any interest date after the end of the first year from the date of issuance Required- (2 parts below) 7 1) Calculate the PV of the bond (2 marks) 2) Prepare the journal entry at issuance using the incremental method (5 marks