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Q6.1 3 Points Milk Ltd issues 50 000 $1 redeemable convertible notes to Lid Ltd. The notes pay interest at 3% p.a. Each note converts at any time at the option of Lid Ltd into one ordinary share. The notes are redeemable at the option of Lid Ltd for cash after 5 years. Market rates for similar notes without the conversion option are 4% p.a. Required: Explain whether Milk Ltd has a financial asset, financial liability or equity instrument resulting from the situation above and calculate the value of the financial instrument(s) that you identify Enter your answer here