Problem 1 On January 1, 2020, Thunder Corporation issued 2.000 of its 5-year, P1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Interest is payable each December 31. Thunder uses the effective interest method of amortization. On December 31, 2021, the 2,000 bonds were extinguished early through acquisition in the open market by Thunder for P1.980,000 plus accrued interest. On July 1, 2020, Thunder issued 5,000 of its 6-year, P1,000 face value, 10% convertible bonds at par. Interest is payable every June 30 and December 31. On the date of issue, the prevailing market interest rate for similar debt without the conversion option is 12%. On July 1, 2021, an investor in Thunder's convertible bonds tendered 1,500 bonds for conversion into 15,000 ordinary shares of Thunder, which had a fair value of P105 and a par value of Pl at the date of conversion, Required: Based on the above and the result of your audit, determine the following: (Round off present value factors to four decimal places.) 1. Issue price of the 2,000 5-year bonds (5 points) 2. Carrying amount of the 2,000 5-year bonds at December 31, 2020 (5 points) 3. Gain on early retirement of bonds on December 31, 2021 (5 points) 4. Equity component of the 6-year bonds (5 points) 5. Increase share premium as a result of the conversion of the 1,500 6-year bonds (5 points)