Dalal BSC issued BHD900,000 of 4% loan notes on 1 January 2019, redeemable at par on 31 December 2022 or convertible to

ordinary shares on the basis of 14 ordinary shares for each $100 loan note. The market interest rate for identical loan notes with no

conversion rights would have been 6%.

Cumulative 4 year discount factors at 4% and 6% are 3.630 and 3.465, respectively

What is the value of the liability component and the equity component of the loan notes at inception?