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2) A company issues $10 million of 6% convertible bonds at par. The bonds are redeemable at par after four years or can be converted

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2) A company issues $10 million of 6% convertible bonds at par. The bonds are redeemable at par after four years or can be converted at any time up to that date into 20 ordinary shares for every $100 of bonds. The market rate of interest for similar debt which is not convertible is 8%. Required Show how the bonds should be recorded on issue in the statement of financial position

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