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Berteand issued $ 1 0 millon corvertible loan notes on i October 2 0 1 8 that carry a nochinal intarent ( coupon ) rate

Berteand issued $10 millon corvertible loan notes on i October 2018 that carry a nochinal
intarent (coupon) rate of 5$ per annuin. They are redenmable on 30 September 2021 at par for
cash or can be exchanged for equity shores in Bertrand on the basis of 20 shares for each 5100
of toan. A similar loan nole, whout the comvenion option, would have required Bertrand is pay
an interest ralo of 83.
The prusent value of $1 tecolvabla at the end of each year, basod on ditcount rates of 6% and
8%, can be taken as:
Plisas, provide all joumal entries necessary to account for thin trantaction at inception and as
of 30 September 2019.
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