20 pts The following cases are independent of each other. 1. Your company issued some redeemable convertible notes which pay interest of 6 percent per year and are redeemable at the end of 4 years at the option of the holders. Each note will be redeemed for $10 cash or for as many ordinary shares in your company that equal $10. 2. Your company issued some redeemable convertible notes which pay interest of 6 percent per year. The note holders have the right to convert these notes into 4 ordinary shares per note. The note holders also have the option to redeem the notes for cash 6 years after the notes were issued. The annual market rate of interest for similar notes without the conversion feature is 8 percent. ho Required a) Identify whether each case gives rise to an equity instrument, a financial liability, a financial asset, or a compound financial instrument. (1 mark for each case) b) Briefly explain your response in (a) for each case. (9 marks for each case) Activate Go to Setti HTML.Ed O RI 20 pts The following cases are independent of each other. 1. Your company issued some redeemable convertible notes which pay interest of 6 percent per year and are redeemable at the end of 4 years at the option of the holders. Each note will be redeemed for $10 cash or for as many ordinary shares in your company that equal $10. 2. Your company issued some redeemable convertible notes which pay interest of 6 percent per year. The note holders have the right to convert these notes into 4 ordinary shares per note. The note holders also have the option to redeem the notes for cash 6 years after the notes were issued. The annual market rate of interest for similar notes without the conversion feature is 8 percent. ho Required a) Identify whether each case gives rise to an equity instrument, a financial liability, a financial asset, or a compound financial instrument. (1 mark for each case) b) Briefly explain your response in (a) for each case. (9 marks for each case) Activate Go to Setti HTML.Ed O RI