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Jhansu Ltd. issued $ 4,000,000, 5-year, 8% convertible bonds at par. Bonds pay interest annually. Each $ 1,000 bond is convertible to 200 of Jhansus
- Jhansu Ltd. issued $ 4,000,000, 5-year, 8% convertible bonds at par. Bonds pay interest annually. Each $ 1,000 bond is convertible to 200 of Jhansus no par value common shares, which are currently trading at $ 25 each. The current market rate for similar non-convertible bonds is 10%. Assuming Jhansu adheres to IFRS, the value to be recorded for the conversion option is:
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
19th edition
1133957919, 978-1285632988, 1285632982, 978-0357691229, 978-1133957911
