(d) Recall the Kat bonds issued to the market in 2016 from a previous exercise. The bonds pay semi-annual interest to the bondholder, and mature in 6 years. The bonds are unique in their interest payment structure: the bondholder can choose, for each interest payment, to receive either a stated amount of cash interest or a stated number of shares of Kats common stock. Each bondholder notifies Kat within 2 weeks of each interest payment date of its preference, and Kat must honor the bondholders choices on the payment dates.

Which types of assertions are particularly difficult for management to make for this txn? Explain Fully in a few sentences.