E. LONG TERM DEBT During the second quarter of fiscal 1998 (not an error), Whole Foods issued zero coupon convertible subordinated debentures (bonds that pay no interest) with a face value of $308.8 million scheduled to mature in 20 years - on March 2, 2018. The issue price resulted in an effective yield to maturity of 5%. According to Note 8 (long term debt, not provided), The debentures have a conversion rate of 21.280 shares of Company common stock per $1,000 principal amount." (1) Estimate the gross amount of proceeds received by the Company from this debt issue assuming semi-annual compounding. (I.e., what is the PV of the 308.8 million to be paid 20 years from issuance?) Ignore any issue costs. Were these bonds issued at a premium, a discount or at par? (4 points) (2) Prepare: a) a journal entry to record the issuance of the convertible debentures in fiscal 1998 and b) a journal entry to record interest expense at the end of the first six-months in fiscal 1998. (8 points) (3) What is a major reason for issuing zero coupon convertible subordinated debentures? (3 points)