"On July 1, 2015, Swifty Ltd. issued a series of $3,300,000 face-value convertible bonds due in five years. Each $1,000 bond allowed the holder to convert the bond to 200 common shares. On the day the bonds were issued, Swifty calculated that the conversion rights were valued at $158,608. On July 1, 2018, the bonds had a carrying value on Swifty’s books of $3,241,451, and the fair market value of the bonds without the convertible option was $3,258,000."