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At the beginning of the current year, the company issued $2.5 million convertible bonds, of which $2 million was correctly allocated to debt. The bonds'

At the beginning of the current year, the company issued $2.5 million convertible bonds, of which $2 million was correctly allocated to debt. The bonds' market yield is 4% annually, pays interest semi-annually, matures in five years, and can be converted into common shares at the ratio of 1,500 shares per $1,000 bond.

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