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On January 1, 2020, Sunland Ltd. issued 920 5-year, 10% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is

On January 1, 2020, Sunland Ltd. issued 920 5-year, 10% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 12%.

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