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Q6.1 2 Points Wilber Ltd issues $100 000 convertible notes, each with a face value of $1. The notes pay interest at 5% p.a. in
Q6.1 2 Points Wilber Ltd issues $100 000 convertible notes, each with a face value of $1. The notes pay interest at 5% p.a. in arrears and mature at the end of the fourth year. Market interest rate for similar notes without a conversion option is 8%. Each note can be converted into 1 ordinary share at any time at the option of the holder. Required (Show any necessary calculations and round your answers to the nearest whole dollar): Calculate the equity component (if any) and the financial liability component (if any) of the convertible notes. Please justify/explain your answer. (2 marks) Enter your answer here Q6.2 5 Points On 1 July 2020, Golden Ltd acquired some government bonds which pay interest of $100,000 at the end of each of the next five years and the principal of $1,000,000 on 30 June 2025. The government bonds were acquired at a price that will generate an effective interest rate of 5 percent. On 30 June 2021, the required market rates of return for these government bonds decreased to 4 percent Required (Show any necessary calculations and round your answers to the nearest whole dollar): a) Determine the initial purchase price of the government bonds on 1 July 2020. (2 marks) b) Under what condition(s) can Golden Ltd subsequently measure the government bonds at amortised cost? Please identify the relevant accounting standard and explain
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