3 10 MARKS Norman Ltd issues 4,000 x $1,000 6% convertible bonds at the start of 1 July 2021. The bonds are issued at par and are redeemable in three years' time or are convertible into 250 ordinary shares per $1,000 bond. When the bonds are issued, the prevailing market interest rate for similar debt without conversion options is 9%. Discount factors are: 9% 6% Year 1 0.917 0.943 Year 2 0.822 0.890 Year 3 0.772 0.840 Required: Calculate the equity component of the bonds