Please read the bold portions of the question!!

On December 31, 2012, Laraboo Corp. issues 11%, 10-year convertible bonds payable with a maturity value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 12%, and the issue price of the bonds is 94.265. Laraboo Corp. amortizes bonds by the effective-interest method.

d. Conversion by the bondholders on July 1, 2014, of bonds with face value of $1,600,000 into 90,000 shares of Laraboo Corp.s $1-par common stock.

Someone gave me the answer, but that doesn't help me understand how to answer similar questions on my own. Please explain why 2/5 is used in the following journal entry:

Discount on Bonds Payable
($209,547 2/5)....................................................		83,819

3. Show how Laraboo Corp. would report the remaining bonds payable on its balance sheet at December 31, 2014.

And please explain why 3/5 is used for that calculation on the balance sheet.

Less: Discount on bonds payable
($202,120 3/5*)................................................................	(121,272)	2,278,728