On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is payable
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On January 1, 2020, Raybond issued its 10-year, 7% P1,000,000 convertible bonds at 122. Interest is payable annually every December 31, 2020. The bonds would have sold for P1,154,435 without the conversion feature. The effective interest rate of similar bonds without the conversion feature is 5%.
What is the accrued interest as of December 31, 2020?
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