On December 29, 2020, the company issues 500,00 4% 5-year bonds for 108. The bonds were issued to offer a 3% yeild. The excess of the amount received compared to the present value was due to the conversion feature. Each $100 bond can be converted into 100 common shares. Interest is paid annnually

Would this be the correct way to do it? pv: 522,899

rate: 3%

Per: 5

Pmt: 20,000

Fv: 500,000

Type: 0

My amortization schedule looks like this:

Date Pmt interest amortization Balance

522,899

20,000 15,686.96 4,313.04 518,585

" " 15,558 4,442 514,143

and so on.

How do I determine the excess amount?