On 1 January 2016, Hydro issues $30M of 8% loan stock at par. Interest on this loan stock is payable on 31 December each year. The stock is due for redemption at par on 31 December 2018 but may be converted into ordinary shares on that date instead. Calculate the fair value of the liability component and the equity component of this loan stock, assuming a discounting rate of 10% per annum (which is the rate of interest that would be expected on comparable loan stocks without the conversion option).