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. Darby Corporation issued at a premium of $10,000 a $200,000 bond issue convertible into 4,000 ordinary shares (par value $40). At the time of
. Darby Corporation issued at a premium of $10,000 a $200,000 bond issue convertible into 4,000 ordinary shares (par value $40). At the time of the conversion, the unamortized premium is $5,000, the market value of the bonds is $210,000, and the share is quoted on the market at $60 per share. If the bonds are converted into ordinary shares, what is the amount of share premium- ordinary to be recorded on the conversion of the bonds? (3 Points) * O $45.000 $22,000 $32,000 $80,000 10. Rome, Inc. issued bonds with a maturity amount of $500,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that * (1 Point) the effective yield or market rate of interest exceeded the stated (nominal) rate. the stated rate of interest exceeded the market rate. the market and nominal rates coincided. no necessary relationship exists between the two rates
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