On 1 January 2018 Maxim issued a P80m three year convertible bond at par. There were no issue costs. The coupon rate is 13% payable annually in arrears on 31 December. The bond is redeemable at par on 1 January 2021. Bondholders may opt for conversion. The terms of conversion are 5 shares for every P4.00 owed to each bondholder on 1 January 2021. Bonds issued by similar companies without any conversion rights currently bear interest at 18%. Assume that all bondholders opt for conversion in full. Describe how the above will be accounted for and show the calculation