On 1 April 2018, a company issues a 400 000 4% convertible bond at par. Interest is payable on 31 March each year. The bond is redeemable at par on 31 March 2023 but may be converted, at the option of the holder, into ordinary shares at any time before maturity. The market rate of interest to be used in discounting calculations is 6%.

The present value of 1 receivable at the end of each year, based on discount rates of 4% and 6% are as follows:

End of year	4%	8%
1	0,9615	0,9434
2	0,9246	0,8900
3	0,8890	0,8396
4	0,8548	0,7921
5	0,8219	0,7473

Required

Calculate the liability component and the equity component of this bond as at 1 April 2018. Show all relevant workings.